Cryptocurrency investors sue exchanges, issuers in New York

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A group of investors sued four cryptocurrency exchanges and seven issuers claiming they sold billions of dollars of unregistered digital tokens and other securities in violation of U.S. securities laws.

The lawsuits name exchanges Binance, Bibox, BitMEX and KuCoin, and issuers Block.one, Tron, Bancor, Civic, Kybercoin, Quantstamp and Status, records show. The suits, filed late Friday in Manhattan federal court, seek to represent classes of cryptocurrency investors.

“The cases allege that exchanges and issuers failed to comply with federal and state securities laws intended to protect investors from unscrupulous behavior,” Kyle Roche, a lawyer for the investors, said in a statement Monday.

The investors claimed the exchanges profited from transactions and cash payments, often exceeding $1 million, from issuers seeking to list their tokens on the exchanges. According to the lawsuits, the defendants violated state and federal laws intended to provide transparency and prevent fraud.

Bloomberg News