Bitcoin
$ 39,784
Ethereum
$ 2,286.7
Litecoin
$ 135.39
okex ads

Tron files motion to dismiss latest ICO lawsuit

The Tron Foundation has petitioned a New York federal court to dismiss a class action lawsuit against it, after calling the claims on which it is based “fatally flawed.”

The lawsuit against Tron was brought following allegations of securities law violations, following the foundation’s $70 million initial coin offering (ICO) in 2017. Alleging the case has “no connection” to New York and that the plaintiffs did not take part in the original token sale, Tron recently filed a motion to dismiss the case.

The motion also accuses the lead plaintiffs of filing the lawsuit some two years after completion of the ICO: “Despite having not purchased during the initial offering or from Tron, plaintiffs attempt to form a nexus between their purchases and alleged marketing activities by Tron.”

According to the motion, the lead plaintiffs allegedly purchased tokens through a secondary exchange, namely Binance, which Tron believes would invalidate claims under securities laws—laws which do not cover secondary market transactions.

As a result, the Tron Foundation has said the decision to purchase the TRX tokens several years after the ICO has no connection to their alleged actions.

The motion also rejects allegations that the 2017 Tron whitepaper was misleading because it says the tokens are not a security, described in the motion as an “afterthought.”

“This claim was not even pleaded in the original complaint, and it is nothing but a litigation afterthought.”

The lawsuit was filed with the court back in April this year, alongside 10 other similar lawsuits filed in the Southern District of New York that day. All of the claims alleged the distribution of unregistered securities.

The Tron ICO ran from August to September 2017, raising $70 million from the sale of TRX tokens for the Foundation.

This article was originally published on Coingeek.com

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

CBN ORDERS STOP OVER SALE OF FOREX TO BDCS OPERATORS
July 27, 2021By
Billionaire Fund Manager Jeffrey Gundlach Convinced Bitcoin Will Fall Below $23K, US Dollar Is ‘Doomed’
July 27, 2021By
From $100 Million to Nothing — Biographer Claims John McAfee Was Broke When He Died
July 27, 2021By

Advertisement

Video Posts

In
Impact Of Technology On 4.0
July 6, 20210
In
Importance Of Cryptography
July 3, 20210

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin39,784 0.21 % 7.78 % 32.74 %
Ethereum2,286.7 0.31 % 4.74 % 27.39 %
Tether0.9986 0.32 % 1.01 % 0.34 %
Binance Coin311.73 0.00 % 3.04 % 17.02 %
Cardano1.270 0.21 % 3.30 % 20.15 %
XRP0.6411 0.46 % 3.00 % 20.42 %
USD Coin0.9991 0.18 % 0.23 % 0.40 %
Dogecoin0.2051 0.18 % 2.10 % 18.59 %
Polkadot14.19 0.76 % 3.40 % 28.13 %
Binance USD0.9957 0.32 % 0.66 % 0.90 %

You have not selected any currencies to display