US Judge Dismisses Motion Against Bancor After Finding Allegations Inadequate to Give It Jurisdiction

US Judge Dismisses Motion Against Bancor After Finding Allegations Inadequate to Give It Jurisdiction

A Manhattan federal judge has dismissed a securities fraud class action against Bancor after ruling that the plaintiff’s allegations were not enough to give the court jurisdiction. According to a report, the dismissal of the case against represents the first such ruling “in a suite of similar cases filed by crypto investors represented by Selendy & Gay and Roche Cyrulnik.” US Courts Have no Jurisdiction

In their motion against Bancor, which has offices in Switzerland and Israel, the plaintiffs led by Timothy Holsworth, had argued that the protocol’s “BNT token is a security and thus falls under U.S Securities law.” In addition, the plaintiffs also alleged that Bancor had “made numerous false statements and omissions that led reasonable investors to conclude that the BNT tokens were not securities.”

However, in their defense, Bancor countered by arguing that a U.S. trial would be “inappropriate due to the company’s international and geographical nature.” According to a report, Bprotocol Foundation is incorporated under Swiss law and the organization has offices in Zug, Switzerland, and Tel Aviv, Israel. Additionally, the four founders of Bancor live in Israel.

US Investors Versus Non-US Token Issuers

Meanwhile, in their submission, the plaintiffs had insisted the 587 BNT tokens purchased on 4 September 2019 by one Wisconsin resident, William Zhang gave U.S. courts jurisdiction. Zhang, who initially filed the lawsuit, bought the tokens valued at $212.50 on Coss, a digital exchange based in Singapore. However, in dismissing the case, the US judge Alvin Hellerstein said: Wherever the current business location of Bancor, New York is not a reasonable and convenient place to conduct this litigation.

In addition to the lawsuit against Bancor, the plaintiffs have filed motions against issuers of EOS, TRX, KNC, and OMG. Centralized exchanges based outside the U.S. like Binance and Kucoin are also included in the lawsuit.

What are your thoughts on this ruling by a U.S. judge? You can share your views in the comments section below. The Fed Is Carefully Examining Digital Dollar — Chairman Jerome Powell Says "Very High Priority Project for Us" REGULATION | 8 hours ago India"s Warren Buffett Wants Regulators to Ban Bitcoin and Focus on Digital Rupee REGULATION | 12 hours ago Tags in this story Bancor Protocol, Binance, BNT, Crypto investors, EOS, false statements, security token, trx, U.S. Securities Act

Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments