The U.S. Federal Judge ruled that the case against the crypto corporation Bancor had been dismissed, citing the lack of personal jurisdiction and the plaintiff’s failure to prove damages.
The U.S. Federal District Court dismissed a security fraud class action against the cryptocurrency company Bancor, based in Israel.
U.S.— District Judge Alvin Hellerstein ruled on Monday that the case against Bancor had been dismissed, claiming that the plaintiffs had failed to allege damages and lack of personal jurisdiction. The judge also overturned the oral argument scheduled for 4 March 2021, which entered a verdict in favour of the defendants.
The lawsuit was brought by the New York law firms Roche Cyrulnik Freedman and Selendy & Gay in April 2020, claiming that the Bancor protocol maker, the BProtocol Foundation, violated U.S. federal and state securities laws by selling unregistered securities.
According to a statement made by Cointelegraph, the court found that the activities supporting the BNT token were not sufficient to grant the court authority over the BProtocol Base. “The Court lacks personal or specific jurisdiction over the Defendants and the case should be dismissed on the grounds of forum non conveniens,” reads the paper.
The submission states that the BProtocol Foundation works under Swiss law, with offices in Zug and Israel. The plaintiff of the case, Timothy Holsworth, reported that, in 2019, he had purchased 587 BNT tokens from Wisconsin via a digital exchange in Singapore at a total cost of $212.50. While Holsworth is said to have been able to purchase BNT tokens from the U.S., the judge argued that jurisdiction is not appropriate:
“The federal securities laws do not reach a purchase and sale outside the United States […] Wherever the current business location of Bancor, New York is not a reasonable and convenient place to conduct this litigation.”
The judge also claimed that Holsworth had refused to provide evidence that BNT coins had decreased in value. In addition, the plaintiff did not plausiblely say that the tokens had been bought from Bancor or in conjunction with its $153 million initial coin offering completed in June 2017.
The most recent court decision marks the latest verdict in a number of related cases brought by investors represented by Roche Cyrulnik Freedman and Selendy & Gay. As Cointelegraph has previously reported, law firms also represent similar filings against the world’s largest crypto-exchange companies, Binance, BitMEX, KuCoin, Block.one and others.
The company is also involved in the case against Craig Wright, a self-proclaimed Bitcoin founder (BTC) representing the estate of Ira Kleiman. The estate is demanding 50 percent of Wright’s $1.1 million Bitcoin fortune, which the claimant rightly says belongs to them.
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