Stormsmedia Sues Giga Watt, Inc. in ICO Class Action Blockbuster
December 28, 2017 |
On December 28, 2017, Silver Miller and Terrell Marshall filed a Class Action Complaint against Giga Watt, Inc. It is important for investors in companies that raise funds utilizing an Initial Coin Offering to know that all pre-functional token sales fit the U.S. laws’ definition of the sale of a security, which means the seller either has to comply with U.S. securities laws by registering the product or obtain a government-granted exemption from those laws before conducting the sale. In this case, the defendant — whether intentionally or not — did neither and is therefore strictly liable for offering and selling unregistered securities. Just because utility tokens might one day have a consumptive use does not remove them from being a “security” prior to that use. Promoting the expectation of profit from pre-functional tokens, like Giga Watt did and continues to do, is by definition the sale of a security; and this case will hold Giga Watt accountable for its actions.
See the Class Action Complaint:
Stormsmedia, LLC vs. Giga Watt, Inc., et al.
