The calls for proper regulations tailored towards cryptocurrencies, crypto exchanges, crypto service firms continue to be high. Many analysts feel that proper regulations and licensing from several nations’ financial regulatory bodies will limit the increasing amount of law breaches and defaults by many crypto servicing firms, which have seemingly look like vices affecting the space’s growth.
Many crypto firms and exchanges have now continued to face punishments and fines from many nations’ financial regulators due to several law breaches. Fortunately for Bancor, an Israeli-based cryptocurrency firm, a court ruling case filed against them for fraud has now been dismissed by a U.S. Judge.
Plaintiffs believe Bancor was not fully open with the details of its token
Bancor is one of the few crypto service firms, who will now be able to put behind its back, a legal case that could have cost the Israeli firm millions of dollars in fines if found guilty. The Israeli crypto firm was issued a court order by two American law firms- Roche Cyrulnik Freedman and Selendy & Gay. They falsely accused the crypto firm of selling unregistered securities.
The New York law firms believed that Bancor, who has now been acquitted, used BProtocol Foundation, its native protocol developer, to carry out such ordeal. In the New York law firms’ filing, they believed that Bancor had violated the country’s federal and state securities laws by selling unregistered assets and hence demanded that the Israeli Protocol developer be made to face the law.
Two plaintiffs, namely William Zhang and Timothy Holsworth, had initially testified in the ongoing case. Zhang claimed to have purchased the BNT digital coins from a Singapore crypto exchange, which, according to the law filing, is equivalent to securities. The two plaintiffs also accused Bancor of lying about its BNT tokens’ details, as they claim that Bancor had purposely sold its tokens to them, knowing fully well that they are classified under unregistered securities in the U.S. laws.
The case was dismissed as evidence was not enough
The U.S. Judge, Alvin Hellerstein, believes that there is not enough evidence for continuing with the case. The BNT tokens’ purchase did not occur in New York or the United States, where the tokens are currently classified as unregistered securities, hence the dismissal. The case dismissal was met with several applause by the defendant’s lawyers, who believe that Bancor had not violated any rule in the U.S. and was not even supposed to be tried in the country because a citizen bought its token via a Singapore exchange.
However, the court rulings have seemed not to have taken a toll on the fortunes of the firm’s offerings, as its tokens have continued to perform in the Blockchain market. However, there is no news yet on any further trial, outside the U.S. or within, as the case can no longer be tried in New York.