Faces Class Action Lawsuit Related to EOS ICO
Main page News, Altcoins, ICO is facing a class action lawsuit related to the ICO of the EOS token.

Crypto Assets Opportunity Fund LLC and Johnny Hong filed yesterday a class action lawsuit against in the US District Court for the Southern District of New York.

The defendants include the company CEO Brendan Blumer, CTO Daniel Larimer, cryptographer and former partner Ian Grigg and former adviser Brock Pierce.

According to the lawsuit documents, the company allegedly provided investors in the EOS token with false and misleading information about it in order to raise a large amount of money through an allegedly unregistered securities sale.

Crypto Assets Opportunity Fund LLC and Hong claim they bought EOS tokens on a secondary market after the sale, which allowed the company to raise around $4B.

The plaintiffs accuse the company of "further violating the securities laws by making materially false and misleading statements about EOS, which artificially inflated the prices for the EOS Securities and damaged unsuspecting investors." has had problems with the SEC in the past. In October 2019 the company agreed to pay a $24M fine to the regulator for allegedly conducting an unregistered securities sale during the EOS ICO, which took place between 2017 and 2018 and brought the company about $4.1B.

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