The U.S. District Court for the Southern District of New York recently rejected a proposed settlement of a securities class action involving purchasers of digital tokens due to concerns about whether the lead plaintiff had adequately represented the class for settlement purposes. Judge Lewis A. Kaplan held in Williams v.
ICOs
SEC Swings Into 2020, Warning Investors of Initial Exchange Offerings
By Allen S. Li on
The SEC’s Office of Investor Education and Advocacy issued an alert on January 14, 2020, warning investors of initial exchange offerings and the potential for fraud. This follows the 2020 examination priorities the SEC released at the beginning of the year, which touched on virtual currencies and digital assets,…
SEC Flexes Funny Bone in Fictional Token Offering
By Pengtao Teng on
The Securities and Exchange Commission (the “SEC”) has taken to using humor and sarcasm to educate retail investors about the potential risks of purchasing tokens in initial coin offerings (“ICOs”).
This week, the SEC issued a press release presenting “a hot investment opportunity.” The release pointed to a website touting…