US Investors in Tezos’ 2017 ICO May Be Eligible for $25M Settlement

Investors who participated in Tezos’ (XTZ) initial coin offering (ICO) between July 1, 2017, and July 13, 2017, have been notified that they may be eligible for a share of the $25 million settlement proposed settlement to an ongoing class-action lawsuit alleging securities violations. What may comprise the case’s final Settlement Hearing is set to take place on August 27 to determine whether the settlement and proposed plan of allocation will be approved as “fair and reasonable,” and whether attorney’s fees will be awarded as part of the agreement. Per…

SEC Orders ICO Startup to Return $25.5M to Investors

The United States Securities and Exchange Commission (SEC) has ordered cryptocurrency firm BitClave to return $25.5 million to investors. In a March 28 announcement, the SEC announced charges against the California-based cryptocurrency startup. The regulator found BitClave to be responsible for selling unregistered securities in its initial coin offering. Chief of the SEC Enforcement Division’s Cyber Unit Kristina Littman commented: “Issuers of securities, traditional or digital, must comply with the registration requirements of the federal securities laws. […] The remedies ordered by the Commission will provide meaningful relief to investors…

Another Class Action Against Block.​One Alleges Dirty Dealings During EOS ICO

Per a May 18 complaint, more investors are looking to recoup funds invested in the record-breaking initial coin offering for EOS — which netted a total of $4 billion in cryptocurrency. Lawyers for the plaintiffs are calling over $200 million of that money illegally raised.  Conflict with U.S. securities law and investors The complaint alleges that EOS was an unregistered security offering by block.one. Block.one is the development firm that spearheaded the ICO for EOS, which many saw as a form of investment in the company.  Language in the purchase…

Telegram Agrees to Hand Over Trove of ICO Documents to SEC

Telegram has filed an order of consent agreeing to provide a trove of communications and documentation requested by the United States Securities and Exchange Commission (SEC) on May 7. The communications concern the distribution of Telegram’s Gram tokens and purchase agreements relating to its 2018 initial coin offering (ICO). Telegram’s consent comes amid the Free Telegram Open Network (TON) community’s decision to launch a version of the TON blockchain via a ‘fork’. The SEC halted Telegram’s offering in October 2019 for conducting an unlicensed offering of securities. After six months…

Kevin Hart’s Role in ICO Scam May Go Unpunished

Investors who participated in the FLiK initial coin offering, or ICO, in 2017 have opposed entertainer Kevin Hart’s bid to have the $7 million lawsuit dismissed. The 25 investors claim that they collectively lost more than $2 million as a result of Hart, rapper ‘T.I.’, and FLiK executive, Ryan Felton, touting unregistered securities for an ICO that ultimately failed to materialize. ICO investors fight for suit against Kevin Hart to proceed In their opposition, the plaintiffs argued that the FLiK ICO “depended on” endorsements from celebrities to “elevate the standing”…

Co-founders of ICO Startup Admit to Stealing Business From Their Own Company

The co-founders of Bidooh, a British digital advertising firm, admitted to stealing intellectual property from their own company with the intention of selling it to third-parties. The firm created facial analytics software for use in advertisement, after ending a $3 million initial coin offering, or ICO, in 2018. As reported on April 20 by Prolific North, a U.K. local news outlet, Bidooh’s co-founders, Abdul Alim and Shahzad Mughal, were accused of creating a clone of their own company and selling Bidooh’s products to third parties. This was likely done to…

Investor Z Fights to Redact its ‘Secret Sauce’ in Telegram ICO Case

An unnamed investment firm dubbed ‘Investor Z’ is one of almost a dozen firms battling the U.S. Securities and Exchange Commision (SEC) to keep their Gram token investment strategies secret. The 11 investment firms want their proprietary analyses of the Telegram initial coin offering (ICO) to be redacted from the case. Investor Z argued that divulging their strategies is like publicly revealing the recipe for Coca Cola. The long running case has seen the SEC granted an injunction against the worldwide distribution of Grams as they have been deemed securities…

Blockchain Association Weighs In on SEC Case Against Kik’s ICO

The United States-based Blockchain Association has filed an amicus curiae brief in support of Canadian messenger Kik amid the firm’s legal battle with the Securities and Exchange Commission. The association addressed the April 17 brief to the court which is considering the case, asking it to deny the SEC’s motion for summary judgment and decide the case narrowly to avoid casting doubt on cryptocurrency projects that have yet to appear before the court. In March, the SEC requested summary judgment, claiming that it possessed “undisputed evidence” that Kik’s ICO distributed…

Lead Plaintiff Settles Class Action Targeting $20 Mln ICO for $250,000

In a continuation of ATBCoin’s class action lawsuit over its $20 million dollar Initial Coin Offering, or ICO, the lead plaintiff has filed to settle the case for 1.5% of the total raised. While ATB Coin claimed that its blockchain would be the fastest in the world, ATB’s launch revealed that its technology could not out-perform other ledgers. $20M ICO Suit to Settle for $250,000 In a motion for preliminary approval filed on April 10, the lead plaintiff in the suit, Raymond Balerta, has filed for a $250,000 settlement. The…

ICO statement on investigating coronavirus scams

We are supporting businesses eager to stay in touch with customers during the Covid-19 pandemic. The ICO can help businesses use people’s personal data responsibly when trying to reach new and existing customers. We provide tools and clear guidance to ensure companies can reach out to their customers in a way that maintains customer trust and meets data protection standards. But we’re also aware of a growing number of organisations using the public health emergency opportunistically to set up scams and contact vulnerable people using nuisance calls, unsolicited emails, and…