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Statute of Limitations Stopped Crypto Industry Class Actions

On April 27, 2021, one year after filing eleven putative class action lawsuits against cryptocurrency issuers and exchanges, five plaintiffs dismissed proposed securities class actions based in part on a one-year statute of limitations defense.

Securities Litigation Update: Southern District Of New York Dismisses Putative Securities Class Action Alleging Sale Of Unregistered Cryptocurrency, But Risk Remains For Crypto-Issuers And Exchanges - Technology

Securities Litigation Update: Southern District Of New York Dismisses Putative Securities Class Action Alleging Sale Of Unregistered Cryptocurrency, But Risk Remains For Crypto-Issuers And Exchanges - Technology
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SDNY Dismisses Putative Securities Class Action Alleging Sale of Unregistered Cryptocurrency

Advertisement Securities Litigation Update: Southern District of New York Dismisses Putative Securities Class Action Alleging Sale of Unregistered Cryptocurrency, But Risk Remains for Crypto-Issuers and Exchanges Friday, April 23, 2021 In re Bibox Group Holdings Ltd. Securities Litigation, 1 Judge Denise Cote of the U.S. District Court for the Southern District of New York dismissed a putative class action alleging registration violations under securities laws against a cryptocurrency issuer and exchange, holding that the plaintiff lacked standing to assert class claims based on crypto-assets he did not purchase and did not timely file suit.  While a win for the defendants, the decision serves as a reminder that the securities laws apply in full force to cryptocurrencies that qualify as securities, and the failure to register cryptocurrencies, as with any other security, may expose crypto-issuers and exchanges to class action claims.

Securities Litigation Update: Southern District of New York Dismisses Putative Securities Class Action Alleging Sale of Unregistered Cryptocurrency, But Risk Remains for Crypto-Issuers and Exchanges | Cadwalader, Wickersham & Taft LLP

On April 16, 2021, in In re Bibox Group Holdings Ltd. Securities Litigation, 1 Judge Denise Cote of the U.S. District Court for the Southern District of New York dismissed a putative class action alleging registration violations under securities laws against a cryptocurrency issuer and exchange, holding that the plaintiff lacked standing to assert class claims based on crypto-assets he did not purchase and did not timely file suit. While a win for the defendants, the decision serves as a reminder that the securities laws apply in full force to cryptocurrencies that qualify as securities, and the failure to register cryptocurrencies, as with any other security, may expose crypto-issuers and exchanges to class action claims.

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