Recently, lawsuits were filed against many prominent names in the cryptocurrency market, among these names we find:

Binance, Block.one, BitMEX, BiBox, KayDex, BProtocol, Status and Tron Corporation.

The lawsuits allege that those companies were selling or helping to sell securities unregistered.

The aforementioned companies have had many successes in terms of attracting crypto audiences as well as offering to sell tokens on their platforms, but it seems that the regulators are not happy with them for doing the wrong things.

All lawsuits filed in the Southern District of New York, According to the documentsThe platforms were selling crypto tokens via so-called IEO and ICO forms.

The lawsuits allege that KuCoin, Block.one, Quantstamp, Civic and Binance were issuing and selling ICO tokens, while the BitMEX lawsuit alleges that it engaged in the sale of unregistered securities.

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The lawsuit alleges that the tokens on the list are unregistered securities.

Here are some of what was stated in the lawsuit against “Binance” and other companies:

Over the past year, the Securities and Exchange Commission, with extensive research and investigation, made it clear that the tokens were securities.

The lawsuit also notes that most ICO offerings can pass the Howey test, which determines whether an asset is a security.

Many platforms that sold unregistered tokens still do not have a broker license in the US, and the SEC indicated that you can implement an ICO and disappear with investments in 2017, but not in 2019.

Lawsuits filed by Roch Friedman:

Roche Friedman is the same law firm behind the recent lawsuits against Bitfinex and Tether.

Roche Friedman has named eleven (11) companies responsible for issuing illegal tokens, and has also attached several prominent crypto figures to the case, including:

• Changpeng Zhao is the founder and CEO of Binance.
• “Vinny Lingham ‘Civic’ CEO”.
• Brendan Blumer and Dan Larimer of Block.one/EOS.

Roche Friedman is a high-profile blockchain law firm that has been involved in cases against Craig Wright and Bitfinex.

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And this time it looks like it has a lawsuit involving new plaintiffs, Chase Williams, Alexander Clifford and Eric Lee.

The named plaintiffs were investing in tokens such as “ELF,” “CVC,” “TRX,” “TOMO,” “SNT,” etc. and used the platforms named above.

We are certainly witnessing the beginning of a new era for regulating cryptocurrency exchanges, because no matter what happens in the lawsuits, regulators and watchdogs will follow up on these cases.

If, for example, the court finds that KuCoin, Binance, and others were selling unregistered securities, the matter will only get worse and the number of potential problems these companies will face will increase.

As for the allegations against the “Tron” Foundation, they were as follows:

TRX tokens are generated through a centralized process, unlike Bitcoin and Ethereum.

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This was not apparent when reasonably issued to investors, it was only after time had passed and additional information was revealed about the intent of the issuer, and only allowed decentralization to emerge, that a reasonable buyer could know that they had secured a guarantee, and thus buyers were misled into believing that TRX was something else. Change the collateral coin while it was.

Similar allegations have been made against Binance, because they have several agreements with token issuers.

These issuers have not registered their tokens as securities and have also entered into agreements with trading platforms in violation of Section 5 of the Exchange Act.

Read also:

Binance sued for seizing $300,000 of crypto from one of its ex-employees

Ripple CEO sued for selling 67 million XRP in 2017