Victor Ugochukwu · Oct 28, 2020 . 5min read
Decentralized exchange Bancor claims U.S. proceedings are improper
Bancor debates that the U.S. is not liable to commence proceedings over international matters. They claim that the proceedings are inappropriate.
By Komal Joshi · Oct 16, 2020 . 5min read
According to a local news channel, the decentralized exchange Bancor’s team undergoing legal trial in the U.S. claims that the proceeding was inappropriate. It further explains the problematic outlook is owing to the company’s geographical and international nature. Following the court records filed on Oct. 13 in the U.S. Southern District of New York, Bancor argued that a court apart from the U.S. would be more appropriate to supervise the case owing to its international nature of the complaint.
The exchange says that the complaint is based on a man in Wisconsin utilizing an exchange in Singapore to buy tokens issued by a Swiss entity. This was not allowed to attempt in New York. Bancor’s founders belong to Israel. Moreover, the founders recommended to Judge Alvin K. Hellerstein that the head plaintiff in the class-action lawsuit, Timothy C. Holsworth, could register a similar case in Israel since it has its offices there, and in Switzerland.
Bancor joins the list of several crypto companies facing a lawsuit in the U.S.
For the uninitiated, Bancor is among the seven crypto companies encountering court in New York following lawsuits in April. The lawsuits have been registered against cryptocurrency exchanges Binance, KuCoin, BiBox, and BitMEX and alleged crypto issuers Block.one, Quantstamp, KayDex, Civic, Status, and the Tron Foundation.
The lawsuits claim that the exchanges sold unlicensed securities without an appropriate license. They also engaged in manipulating the market. However, some of them were selectively holding data from investors about the sale of their tokens as securities. In Bancor’s case, Holsworth claims that it infringed on U.S. securities law to sell its Bancor Network Token (BNT).
Moreover, whether BNT is a security or not is the centre of this proceeding. Bancor says that BNT is not a security. Thus, it doesn’t infringe on security law. The trial in the U.S. is unfair to Bancor and other exchanges that are not based out of U.S. Thus, there is an issue of legal jurisdiction. Therefore, resulting in an extension of the proceedings.
Follow Cryptodose for more updates.