Komal Joshi · Oct 29, 2020 . 5min read
Class action lawsuit against Status relies on social media for case proceedings
Lawyers in New York filed a lawsuit against various crypto firms including Status related to illegal ICO activities seek to serve papers via social media.
By Shilika · Aug 6, 2020 . 5min read
It was reported earlier this year that Roche Freedman, a law firm in New York, had filed class-action lawsuits against various cryptocurrency firms. The lawsuits allege that these firms sold unlicensed securities to investors. Court documents relating to the trial are available for the same.
Status, a Swiss-based company, has been implicated in the class-action lawsuit. The plaintiffs accuse Status of selling unregistered securities during its initial coin offering in 2017. They also allege that the company went out of its way to withhold information from investors regarding the extent to which their tokens were securities. These ICOs occurred before the ban on US residents from participating was implemented.
Social media to deliver justice.
The lawyers bringing the case against Status have urged the judge to allow them to serve the documents to the co-founders Jarrad Hope and Carl Bennetts via social media. The plaintiffs filed the suit in New York. The defendants, however, reside in Zug in Switzerland. Given the current state of affairs concerning the pandemic, it is not possible to physically serve the papers to the defendants. The lawyers wish to contact the defendants via their Twitter and LinkedIn profiles. They will also send documents to their email addresses as listed on the Status’ website.
Roche Freedman has already served documents via Twitter in March of this year to the CEO of nChain. The modern times that we find ourselves in calls for a departure from traditional practices. It is quite likely that the judge will allow the lawyers to carry out their request.
Status is one of 7 crypto firms targeted in the lawsuits. The lawsuits were filed back in April, and the accusations against all the defendants are similar. Some of the other companies include Block.One, Bancor, Kyber Network, Tron, OmiseGo, Aave, etc. Additionally, in the case involving Block.One, the company settled to the tune of $24 million with the SEC.
Follow Cryptodose for more updates.