New York Judge Dismisses Case against Nano Developers
A New York judge has rejected out an investor’s planned class-action lawsuit against the development team of altcoin Nano (XRB), as per the court documents filed Oct. 22. The lawsuit indicted the devs of luring him to trade the coin on a podium that lost hundreds of millions of dollars’ worth of the digital currency.
Originally, the lawsuit was listed in April by an American individual, Alex Brola, who allegedly bought $50,000 worth of XRB on Dec. 10, 2017, through Silver Miller law firm. The suit accused Nano’s core team of violating U.S. securities laws by vending unregistered securities and negligently misrepresenting the dependability of Italian crypto exchange BitGrail, from which around 17 million XRB ($187 million at the time) was stolen in February.
In the lawsuit, Brola questioned that Nano is ordered to “rescue fork” the investors’ missing XRB “into a new digital currency in a manner that would fairly reimburse the class of victims.” Although Brola is the entitled plaintiff in the lawsuit, the complaint appealed there are “at least hundreds if not thousands of putative Class members,” that Silver Miller aimed to contact during the discovery period.
U.S. District Judge Nina Gershon terminated the case about a month after Brola voluntarily withdrew the suit. While the notice of dismissal does not state why the suit was plunged, the lead defense counsel Peters Scoolidge apparently told legal news site Law 360 that “the plaintiff withdrew the complaint because the case lacked merit.”
Proceeding to Brola’s decision to withdraw the lawsuit, the defendants insisted the New York federal court dismiss the suit, appealing that the tokens are not securities and therefore are not subject to securities laws.
In a notion to wipe out filed in September, the XRB team cited that the cryptocurrency cannot be categorized as a security because the company had never gained any money in exchange for its insurance and has no investors. “Nano’s value does not derive from a group of managers or executives managing other people’s property; rather, Nano’s value is derived from its utility or potential utility as a currency,” the document further remarks.
Accompanying the hack, both BitGrail and Nano have accused the other of being responsible for the $187 million theft of XRB tokens. BitGrail CEO Francesco Firano told Cointelegraph that “it’s impossible to refund the stolen amount.”