ATBCoin has been booked under the violation of securities act by Raymond Balestra from the New York’s Southern District. The cryptocurrency is facing a class-action lawsuit over the initial coin offering (ICO) that rose over $20 million. According to plaintiffs, the coin and its founder Herbert W. Hoover has sold unregistered securities in the initial coin offering thereby violating the securities act.
Prior to ATBCoin, Centra, and Tezos another ICO have faced similar suits for not registering with the Securities and Exchange Commission (SEC) and are facing a class-action lawsuit. The lawsuit alleges that the cryptocurrencies should be considered as security.
While trying to justify his allegations, Balestra said that since the ATBCoin token was marketed and sold by the company as investments, associated to profits and even accepted BTCC, LTC, and ETH as payment; it should be looked up as security. The lawsuit is seeking relief under Section 12 of the Act after booking the sale of unregistered securities of ATBCoin under the Securities Act of 1933.
Plaintiffs Say They Are Dissatisfied With ATB Blockchain
The filing states that the ATB ICO investors, Plaintiff, and Defendants believed that since it was a clear offer and sale of securities and the ATBCoin was received against their investments, it would have worth more than investment in other currencies including BTC, ETH, or LTC.
The ATB blockchain was launched on September 14, 2017, and the ATB tokens were promoted as the cryptocurrency of the future. The ICO was initiated solely to raise funds so that ATBCoin can come up with a new blockchain that will deliver secure, blazing fast and almost zero cost payments to everyone across the globe. And somehow the plaintiffs and the defendants do not believe that ATBCoin has succeeded in fulfilling this commitment.
The plaintiffs have clearly stated in the complaint that they are entirely dissatisfied with ATB blockchain’s results as the company could not fulfill the promise of providing the fastest blockchain-based cryptographic network in the Milky Way galaxy. The main issue is that the price of ATB token has come down to 50 cents which are even below the offering price. The lawsuit also accuses Hoover of misrepresenting himself.