Investors file class-action lawsuit against Block.one over its alleged “fraudulent scheme”

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“This case arises out of a fraudulent scheme, fueled by a global frenzy over cryptocurrencies and unchecked human greed, to raise billions of dollars through sales of a cryptocurrency called EOS—an unregistered security— to investors in violation of the United States federal securities laws. To drive the demand for and increase profit from the sales of EOS Securities, Defendants further violated the securities laws by making materially, false and misleading statements about EOS, which artificially inflated the prices for the EOS Securities and damaged unsuspecting investors,” according to CAOF and Hong in their class-action lawsuit.

Additionally, CAOF and Hong alleged that the cryptocurrency software company’s “EOS Purchase Agreement did not comply with the registration requirements under the federal securities laws.”

Furthermore, the plaintiffs claimed, “Block.one did not have the ability to create a decentralized EOS blockchain,” a key promise that Block.one failed to deliver. Its failure had a negative impact on the trading price of EOS digital tokens, which harmed investors.