Cryptocurrency investors filed 11 class action lawsuits against various digital currency issuers and exchanges last Friday, Reuters reports. The suits were filed in Manhattan’s U.S. District Court and accuse the companies and their executives of violating U.S. securities law by selling billions of dollars of unregistered digital assets.
According to the report, the lawsuits target Tron, Block.one, and five other digital currency issuers, as well as Binance, BitMEX, and two other cryptocurrency exchanges. The suits allege that issuers failed to register their digital currencies with relevant state and federal agencies. It also alleges that digital currency exchanges profited from listing fees. The plaintiffs also accused BitMEX of manipulating the markets.
One of the plaintiffs’ lead attorneys, Selendy & Gay partner Philippe Selendy, issued a statement today accusing the defendants of betraying the public trust:
“Not unlike the mortgage crisis that led to the Great Recession, the alleged pattern of misconduct by exchanges and issuers yielded billions in profits for wrongdoers through a basic betrayal of public trust.”
In a statement, Block.one characterized the complaints as “opportunistic” and suggested that the company was prepared to defend its interests against “anything that may arise.”