{[{item.pair.split("_")[0]}]}

${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 4})}]}

{[{item.change24}]}% Vol {[{ item.volume.toLocaleString(undefined, {maximumFractionDigits: 2}) }]} USDT

+{[{item.change24}]}% Vol {[{ item.volume.toLocaleString(undefined, {maximumFractionDigits: 2}) }]} USDT

Interactivecrypto does not accept users from your country (Israel)

Crypto firms like Binance, Civic, and Tron in legal problems

Crypto firms

June 11, 2020 | 

4412 Views | 

JOHN K MWANIKI | 

Get Into Cryptocurrency Trading Today

How safe are the trader’s investments in any cryptocurrency? This should be a concern to every trader after some of the top cryptocurrency companies were taken to court over trading in unregistered securities. The lawsuit targeting some of the industry leaders like Binance, Civic, and Tron is making claims worth billions in tokens.

The lawsuit filed on behalf of individuals like Eric Lee, Case Williams, among other affected parties, takes issue with the nature of coin offering. For example, the claim against Binance states that the crypto company used a centralized process for offering unlike with Bitcoin and Ethereum.  This opens them up to all the centralized trading regulations. 

The complainant claims the companies offered, solicited, and sold securities to investors. By doing this, the companies failed to disclose the specific risk the investors were getting into, which is against the provisions of the federal and state monetary laws.

Given the cases' sensitive nature, there is a higher possibility of the suits moving to trial. Even though there have been such cases before, these will set a precedent on the future ICO and investor information provision by the companies.

The Regulatory Status of the Cryptos

bitcoin under the law

One of the concerns that come with the cryptocurrencies is the lack of universal regulatory status. As a new phenomenon in the economy, most countries are yet to put the laws in place to regulate trade. The existent regulatory bodies also find it hard to monitor something, not within their jurisdiction.

The difference in jurisdictions also makes it harder to harmonize regulations. For example, the European Monetary Body can only restrict the assets held in areas out of Europe. This makes traders susceptible to money loss, given the crypto companies can hold assets anywhere in the world.

Traders, on the other hand, can also take advantage of the murky crypto regulations. For example, Block.one, in their response to an earlier lawsuit settlement, assert that they are aware of opportunistic complaints files against the companies. They reiterated their preparedness for the suits even though yet to be severed with the files.

Deciding on whether cryptocurrencies are assets or not also seems to be an issue of contention. All these are based on the type of tokens and the means of fundraising. The complainant claimed all centralized offerings should be treated as an asset.

Are These Cases a Call for Concern?

As every investor understands, bad press is not suitable for business. Any claim of fraud and other irregularities can affect trading, thus the loss of value. You might also be concerned if you are looking to invest in these coins.

Before you put your money in any investments, you have to do your due diligence. You have to understand all the gains that come with the coin as well as the possible risks. You can only proceed to invest when ready to bear responsibility for all the profits and the risks involved.  

Before losing all hopes of ever owning cryptocurrency, traders need to understand that such lawsuits are not a new phenomenon in the crypto world. Commonly, investors will only stay in a cryptocurrency as long as it promises value. Any signs of loss in value are met with such lawsuits to find a way out. The investors claim they didn’t know what they were getting into.

For now, the jury is still out on whether the crypto firms are on the wrong. According to The Block, the cases face an uphill task, compounded with the stalled economy through the prevalent Civid-19 pandemic. That is to say; only time will tell the outcome.

Buy & Sell Cryptocurrency Instantly

Did you like this article?

NEWS

COMMENTS (0)

Manage your own Watchlist

Access all education lessons

Converse with other crypto enthusiasts

Be a part of the Interactive Crypto Community

LIVE RATES

ALL

TRENDING

Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.

{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)

Symbol

Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.

24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.

Trade

{[{ item.name }]}
   {[{ index + $index}]}     {[{ item.pair.split('_')[0] }]}

Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

TRADE

Showing {[{ showing }]}

Symbol

Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.

24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.

Trade

{[{ item.name }]}
   {[{ index + $index}]}     {[{ item.pair.split('_')[0] }]}

Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%

TRADE

Showing {[{ showing_trend }]}