Lawsuit Against Crypto Project Bancor Dismissed in New York
A lawsuit against on-chain liquidity protocol Bancor alleging unregistered security offerings worth £153 million has been tossed by a New York judge.
- “Wherever the current business location of Bancor, New York is not a reasonable and convenient place to conduct this litigation,” District Judge Alvin Hellerstein said in the ruling Monday.
- Lawyers for Zug and Tel Aviv-based Bancor (named in the complaint as Bprotocol Foundation) had previously asserted that a court outside the U.S. would be a more suitable venue for the case.
- Judge Hellerstein also determined that the plaintiff had not demonstrated that the securities were purchased as a result of active soliciting by Bancor.
- The lawsuit alleged that investors had been misled by “numerous false statements and omissions” leading them to conclude that the tokens issued by Bancor were in fact securities and subject to U.S. law.
- Initial plaintiff William Zhang of Wisconsin said he had purchased 587 Bancor Network Tokens (BNT) worth $212.50 on Singapore-based digital exchange COSS.
- Zhang subsequently withdrew be replaced by Timothy Holdsworth as the case’s lead plaintiff.
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The lawsuit had alleged that investors had been misled by Bancor and its tokens were in fact securities.