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EOS-USD.CC
id: 261

Block.one ERC-20 Tokens and EOS $22 Million Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
S.D. New York
Court
1:20-cv-02809
Case number
26 Jun 2017
Class period Start
18 May 2020
Class period End
30 Aug 2023
Claim deadline
Block.one settled $22 million with US-based purchasers of EOS or ERC-20 tokens to end claims over selling unregistered securities in the USA.

From June 26, 2017, Block.one, its Leaders, and Insiders promoted, offered and sold unregistered security called EOS or ERC-20 tokens throughout the United States, in violation of federal and state securities laws.
  • On September 30, 2019, the SEC found that Block.one had violated the Securities Act by selling EOS to the public. As a result of an SEC enforcement action, Block.one was required to pay a $24 million fine.
  • In April 2020 class action against Block.one alleged that the company engaged in unregistered trading of securities, misleading of investors, and improperly funneling funds to its trading arm in Hong Kong.
  • In June 2021, a proposed settlement of $27.5 million was agreed. The deal was intended to resolve investors’ allegations that Block.one sold unregistered securities in a 2017 offering.
  • On August 15, 2022, U.S. District Judge Lewis Kaplan of Manhattan refused to grant final approval of the proposed $27.5 million settlement. The judge concluded that the investor class is inherently conflicted because some tokenholder purchases are covered by U.S. laws but others are not. Kaplan said that the lead plaintiff in the class action, Crypto Assets Opportunity Fund LLC, could not adequately represent the interests of investors whose transactions took place in the U.S. because the fund also engaged in foreign Block.one token transactions.
Taking into account that the settlement has already been agreed by parties, and the refusal of the final approval is a more bureaucratic and solvable issue, then the affected investors most likely have the opportunity to initiate a new Case and receive due compensation.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Breach of Fiduciary duty
Suspected Party
Directors
Management
Service Provider
Security Type
Crypto Asset
Trade Direction
Long
Payout per Share
0.02
Filing date
03 April 2020
Plaintiffs
Crypto Assets Opportunity Fund
Attorneys
Bluhm Legal Cliniic (Chicago, IL), Grant & Eisenhofer, P.A. (New York, NY), Ievgeniia Vatrenko, Esq. (Brooklyn, NY)
Defendants
Brendan Blumer, Daniel Larimer, Ian Grigg, Brock Pierce
Judge
Hon. Lewis A. Kaplan
Administrator
EPIQ
Settlement agreement date
2023-01-27
Court hearing date
19 September 2023
Exclusion deadline
29 August 2023
Objection deadline
29 August 2023
Hearing deadline
29 August 2023
Trades matching type
FIFO
+$22,000,000
Cash Settlement Amount