Bibox Wins Lawsuit Over Sales of Unregistered Securities

Crypto exchange Bibox has won the lawsuit alleging the sales of six unregistered securities after the plaintiff failed to file the complaint within 12 months of the exchange tokens.

April 20, 2021 | AtoZ Markets – A US District Court has rejected a lawsuit alleging that Bibox sold unregistered securities because the lead plaintiff last traded the tokens in question more than 12 months ago, Law360 is reporting.

In June 2020, 11 cryptocurrency companies including Binance, Bibox, and BitMEX faced class-action lawsuits. The documents claimed that each of the defendants traded in tokens with the properties of securities.

According to plaintiff Alexander Clifford, Bibox allegedly misled investors and could not register the native BIX token with the regulatory authorities.

However, on April 16, 2021, the court dismissed the case due to the expiration of the statute of limitations. The judge also noted that Clifford indicated in the statement tokens that he did not personally buy.

In May 2020, Bitcoin Manipulation Abatement LLC accused Ripple and its CEO Brad Garlinghouse of selling more than $1 billion in unregistered securities and violating advertising laws.

Recall that in December, the US Securities and Exchange Commission (SEC) filed a lawsuit against the company. Garlinghouse and co-founder Chris Larsen were also defendants.

In February 2021, the SEC clarified the responsibilities of Garlinghouse and Larsen. The department said that they manipulated the price of the XRP token. Later, the regulator asked six banks for data on the personal financial transactions of Ripple executives over the past eight years.

The company’s lawyers demanded the SEC to explain why it does not classify Bitcoin and Ethereum as securities. In April 2021, the court ordered the department to disclose “interpretation and views” regarding the two largest cryptocurrencies in terms of capitalization.

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