Class Action Lawsuit Brought Against Nano

April 06

A class action lawsuit was brought today on behalf of investors in Nano f/k/a RaiBlocks (XRB), alleging, according to the plaintiffs’ lawyers, that Nano and key members of its core team violated federal securities laws and that, in their push to introduce XRB to a wide market of investors, recklessly directed investors to open accounts and place their assets with a little known, and severely troubled, Italian cryptocurrency exchange called BitGrail.  On February 9, 2018, Bitgrail, which dealt almost exclusively in Nano, was hacked for more than 17 million coins, worth about $187 million USD.  The complaint alleges Nano and its core team engaged in an unregistered offering and sale of securities that violated federal securities laws, including Sections 5, 12(a), and 15 of the Securities Act of 1933, and wrongly ushered investors to BitGrail.

Perhaps the most interesting part of the suit is the requested relief, which includes ordering a hard fork, similar to the way Bitcoin Cash was created.  The complaint asks that the Court rescind the plaintiff class’ investments in XRB and require “Nano to ‘rescue fork’ the allegedly missing XRB into a new cryptocurrency in a manner that would fairly compensate the class of victims.”

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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

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