Summons Issued by the Court
The United States District Court for the Central District of California has become the latest stage for a high-profile legal drama. On August 15, it issued a summons to the video game virtual goods powerhouse OPSkins Group, along with its partner Worldwide Asset eXchange (WAX), as they face allegations from Crypto Asset Fund. Now, that’s what I call a serious game of legal dodgeball!
Understanding the Allegations
To break it down, Crypto Asset Fund, alongside its affiliate Digital Capital Management, isn’t just angered because they lost money in the market. Oh no! They filed a civil complaint with 12 serious accusations ranging from fraud and unlawful business practices, to violations of the Securities Acts of 1933 and 1934. It seems their issues primarily revolve around WAX’s initial coin offering (ICO), which Crypto Asset Fund claims should’ve received the SEC’s stamp of approval.
The Big Fish of ICOs
In October 2017, Crypto Asset Fund reportedly invested a hefty $1.2 million in Ether (ETH) during WAX’s ICO presale. However, what followed was little short of a rollercoaster ride without a safety bar. Instead of delivering a promised 185 million tokens, WAX allegedly unleashed an avalanche of 1.85 billion tokens. Talk about a magic trick gone wrong!
The Price Peak Predicament
As if that wasn’t enough drama, WAX delayed the delivery of said tokens for several days. In that time, the token price skyrocketed. Naturally, Crypto Asset Fund was left watching the market dance away without them, unable to take advantage of their own investment. It’s like showing up late to a party, only to find that all the pizza is gone.
Exploring the Legal Quagmire
The plaintiffs believe that the ICO was nothing more than a sneakily orchestrated scheme to fund an online gambling venture, originally disguised as a legitimate fundraising initiative. In their complaint, they argued that WAX essentially used the ICO process as their personal print press for money. Who needs a money tree when you have an ICO?
An Uncertain Outcome
As for the financial outcome of WAX’s ICO, it’s shrouded in mystery—kinda like trying to figure out your cat’s thought process. While the complaint suggests that it raised $68 million, malicious whispers claim conversations of $80 million and even $150 million in funds raised. It’s hard to keep track when the numbers play hide and seek!
Future Implications
Crypto Asset Fund has requested compensation for lost profits and aims to hinder OPSkins and WAX from future online gambling escapades. Meanwhile, this legal action adds to the growing list of lawsuits that arose from the chaotic ICO environment of 2017 and 2018. The SEC has already settled with some ICOs in similar boats; it’s like watching an episode of a legal reality show where everyone seems to have a big problem but no one knows how to fix it.
+ There are no comments
Add yours