Crypto Investors File Lawsuit Against Huobi And Elastos
Investors have filed a class action lawsuit to the highest judicial authority of the United States, accusing the Huobi crypto exchange, its branch HBUS, and Elastos of violating the securities law, Cryptobriefing reports.
Investors accuse the listed above companies of violating the securities regulation adopted by the US Congress in 1933. Mark Owen is the central applicant. In his opinion, the ICO conducted by the Elastos startup in 2018 violated the fifth article of the law, according to which all such initiatives should be regulated by the US Securities and Exchange Commission (SEC).
The plaintiffs are confident that Elastos' ICO is comparable to the sale of securities, and the tokens of the ELA startup were nothing more than investments, which increase with the growth of the Elastos ecosystem. The ELA tokens are listed on Huobi, which means that the crypto platform and the startup should register with the SEC during the ICO.
According to the white paper, the ELA tokens are utility tokens; they are used exclusively for trading and commission fees in the Elastos ecosystem. During ICO, the company sold two million ELA. According to CoinMarketCap as of February 14, 05:34 (UTC), the token was 104th in the rating with a capitalization volume of $29.9 million and a price of $2.05.
The startup founder Rong Chen stated that the accusations of investors are unfounded and expressed willingness to defend the interests of his company.
As previously reported, the HBUS crypto exchange will provide users with the ability to deposit and withdraw funds in fiat.