Raymond Balestra has filed a lawsuit against ATBCoin ICO and its founder. As Class Action Filed against ATBCoin, we ask ourselves: Is ATBCoin reliable?
29 December, AtoZForex – Raymond Balestra in the Southern District of New York has filed a class action lawsuit against ATBCoin. The lawsuit is related to the initial coin offering (ICO) that has raised over $20 million. The filing has alleged that ATBCoin along with its founder Herbert W. Hoover has breached the Securities Act. According to the plaintiffs, they did so by selling unregistered securities in the ICO.
Is ATBCoin reliable? Class Action Filed against ATBCoin
The lawsuit has further argued that the ATBCoin token was a security. The reason being is the fact that defendants have promoted and sold the token as an investment that would bring profits. According to the lawsuit, it was possible to buy ABTCoin with BTC, ETH or LTC.
Furthermore, the documents allege that ATBCoin’s sale of unregistered securities breached Section 5 of the Securities Act of 1933 and seeks relief under Section 12 of the Act. The filing reads:
“The ATB ICO was a clear offer and sale of securities because, inter alia , Defendants touted, and Plaintiff and other ATB ICO investors reasonably expected, that the ATB Coins received in exchange for their investments would be worth more than the ETH, BTC, LTC or other currencies invested.”
Is ABTCoin “the cryptocurrency of the future”?
The key aim of the ICO was to raise funds for ATBCoin. The project looked into ways of creating and launching a new blockchain that would “deliver blazing fast, secure and near-zero cost payments to anyone in the world.”
In fact, ATB has been referring to the ATB tokens as “the cryptocurrency of the future.” Moreover, the ATB blockchain was established on the 14th September.
In the official complaints, the plaintiffs stated that they are not satisfied with the results of the ATB Blockchain. The claimed that the company promised that the results would be “the fastest blockchain-based cryptographic network in the Milky Way galaxy.” Yet, according to the plaintiffs, they are not.
In addition, the alleging side stated that the price of the ATBCoin token has dropped to 50 cents. They also suspect Hoover is misrepresenting himself.
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