EOS developer accused of violating securities law

By Kluma | InterestingCrypto | 19 May 2020

Block.one, which held the largest ICO in history and raised $4 billion, is being sued

Block.one, the Issuer of the EOS token, was accused of violating securities laws during the ICO. Crypto Assets Opportunity Fund LLC filed a class-action lawsuit in the southern district of new York. The defendants include Block.one CEO Brendan Blamer, technical Director Dan Larimer, former partner Ian Grigg and former adviser Brock pierce, the Block reports.

The plaintiff claims that the company misled investors and distributed false information during the unregistered sale of securities. The document says that EOS was aggressively promoted among American investors. Allegedly, the developers claimed that their blockchain will surpass all existing ones, and among potential investors called it "Ethereum on steroids".

"However, the EOS blockchain turned out to be extremely centralized and did not surpass other blockchains that were already in operation," the plaintiffs believe.

Block.one was founded in 2017. During the ICO, the company raised $4 billion to develop its blockchain. The Commission on securities and exchange Commission (SEC) fined $24 million for violations in the conduct of licensee.


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