The US District Court dismissed the claim, accusing Bibox of selling six unregistered securities after Judge Dennis Kot ruled that the plaintiff had not filed a complaint within 12 months of the token trade.
Attorney Alexander Clifford filed a class action lawsuit on June 3, 2020 seeking to reclaim investments he previously made in the original BIX Bibox token, as well as in Eos (EOS), Tron (TRX), Aave (LEND), and Aelf (ELF). )) on behalf of other investors.
The lawsuit alleges that Bibox selectively withheld information from investors in order to hide that the tokens include unregistered securities while making it easier to trade assets during October 2017. The lawsuit confirms Bibox’s apparent failure to register the BIX token with regulators.
However, the case was dismissed relatively easily on April 16, and the judge indicated that Clifford’s last BIX deal was nearly completed in December 2018 – beyond the 12-month share filing deadline.
“The prosecutor’s allegations about BIX are rejected because they are limited by a statute of limitations,” said Judge Kot.
The judge also noted that the lead plaintiff did not have ongoing claims for the other five tokens, as Clifford only traded BIX and was unable to show how other class members suffered any damage from the sale of other tokens.
“The plaintiff did not claim that he was actually harmed by the defendants’ conduct in relation to the five currencies he did not purchase.”
The initial lawsuit came as a result of a flurry of lawsuits by law firm Roche Freedman in 2020, when the company reported a security breach by several cryptocurrency exchanges and token issuers including KuCoin, Block.One, and the Tron Foundation.
While many of Friedman’s complaints have been dismissed by the courts, lawsuits against Binance and Bitmex player HDR Global are still ongoing.