id: 261, Created by Mr Cryptoinspector, Scout
How it works?
- Company agreed to settle with investors to avoid further litigation
- We prepare documents and claim payout for you
Claim deadline for this case already passed by, but we can still try and file for compensation for you
S.D. New YorkCourt
26 Jun 2017Class period Start
04 Jun 2019Class period End
08 Nov 2021Claim deadline
From June 26, 2017, Block.one, its Leaders and Insiders promoted, offered and sold unregistered security called “EOS” 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.
Failure to Disclose,
Breach of Fiduciary duty
Grant & Eisenhofer
Brendan Blumer, Daniel Larimer, Ian Grigg, and Brock Pierce
Hon. Lewis A. Kaplan
+$22,000,000Total Settlement Amount