11 lawsuits target seven crypto firms in New York

  • Seven crypto exchanges have been targeted by 11 lawsuits filed in a NY federal court.
  • The lawsuit accuses exchanges of having sold unlicensed securities without broker-dealer licensing.

11 recent lawsuits that were filed in a New York federal court have targeted seven crypto companies. The cases have been filed by Roche Freedman, the firm representing the estate of the late Dave Kleiman in the ongoing legal case with self-proclaimed Satoshi Nakamoto, Craig Wright. 

The 11 class-action suits named several parties, including crypto firms such as – Binance, KuCoin, BiBox, and BitMEX and parent company HDR Global Trading Limited, Block.one, Quantstamp, KayDex, Civic, BProtocol, Status and the Tron Foundation. Many industry-leading figures such as Changpeng Zhao, Dan Larimer, Vinny Lingham and Brendan Blumer were mentioned as well.

The lawsuit accuses many exchanges of having sold unlicensed securities without broker-dealer licensing and engaged in market manipulation. The plaintiffs also claim that many token issuers withheld sensitive information from investors to ensure that it would not be clear that the tokens comprised securities.

Crypto assets that are claimed to have compromised securities include – Bibox Token (BIX), Eos (EOS), Bancor (BNT), Status (SNT), Quantstamp (QSP), Kyber Network (KNC), Tron (TRX), Funfair (FUN), Icon (ICX), OmiseGO (OMG), ETHLend (LEND), Aelf (ELF), TomoChain (TOMO) and Civic (CVC).