Roche Cyrulnik Freedman LLP, working with Selendy & Gay PLLC, filed 11 class-action lawsuits on April 3 in the Southern District of New York against seven token issuers and four of the world’s largest cryptocurrency exchanges.
The sweeping filings name exchange giants Binance, Bibox, BitMEX and KuCoin as defendants, along with Block.one, the Tron Foundation, the Bprotocol Foundation — which oversees the Bancor protocol — Civic, KayDex Pte. Ltd. — which operates as Kyber Network — Quantstamp and Status. Executives were not spared, with heavyweights Changpeng Zhao, Dan Larimer, Vinny Lingham and Brendan Blumer also named in the suits.
The lead plaintiffs named in the lawsuits are varying combinations of four individuals. Their claims on behalf of the class identified are that token issuers marketed and sold unregistered securities to United States investors in violation of federal and state securities laws. Exchanges listed them, profiting off the original violation.
The modus operandi of Roche Cyrulnik Freedman
Roche Cyrulnik Freedman is no stranger to crypto-related legal action. It is involved in the lawsuit against Craig Wright, representing Ira Kleiman, the brother of the late Dave Kleiman. That lawsuit seeks 50% of Craig Wright’s Bitcoin (BTC), which the claimant argues rightfully belongs to the Kleiman estate.
Tether, Bitfinex and their backers have also found themselves in Roche Cyrulnik Freedman’s crosshairs. The law firm may be familiar with the sector and some of the dubious conduct to which it bears witness, but is the exorbitantly priced litigiousness that is apparently its modus operandi likely to help the industry mature?
Cynical class-action suits a blight on due process
Class-action suits help level legal playing fields by offering a viable path of redress to those who would otherwise not be able to afford litigation. They also hold corporations to account for…