Lawsuit Against Nano Devs Commences, ‘Rescue Fork’ Requested for BitGrail Funds

A class action lawsuit that was filed in April of 2018 has commenced against the creators of the Nano (NANO) cryptocurrency, in which the plaintiffs allege that developers “violated federal securities laws.” The lawsuit is being handled by Silver Miller Law and Levi Korsinsky, LLP, both US-based firms specializing in securities fraud and/or investment loss. The full text can be found here.

Specifically, the suit claims that developers of Nano - which was previously called “RaiBlocks” before a rebrand earlier this year - “recklessly” encouraged plaintiffs to buy the cryptocurrency on a little known Italy-based exchange called BitGrail, which at the time hosted most of RaiBlocks’ trading volume.

BitGrail (now apparently non-functional) claimed to be hacked last February, but was generally accused of conducting an exit scam. The event caused the value of then-RaiBlocks to plunge 20% in price. Almost $200 million worth of RaiBlocks tokens were either stolen or removed from the exchange.

Notably, the founder of BitGrail Francesco Firano asked the RaiBlocks(/Nano) developers at the time to hardfork the currency in order to return users’ funds to them, à la the Ethereum hardfork which birthed Ethereum Classic. The developers refused.

However, the current lawsuit formally requests that Nano developers conduct such a “‘rescue fork’ or some other procedure” in order to reimburse burned investors.

Securities Violation

There are altogether eleven charges brought against the team, two of them being often-cited violations of Sections 12(a)(1) and 15(a) of the US Securities Act of 1933.

The filing claims that “the success of the investment opportunities and any potential returns thereon were entirely reliant on Defendants’ ability to maintain and expand the functionality and popularity of [RaiBlocks/Nano], thus providing financial returns to investors.”

Whether or not - and which - cryptoassets are considered securities under US law is still a murky and inchoate issue. Although at least two of the best known digital assets, Bitcoin and Ethereum, have been grandfathered in as non-securities, perhaps the next-best known one - XRP - is still languishing in legal limbo.

CryptoGlobe recently reported on the US Securities and Exchange Commission’s efforts to prosecute what it sees as securities violators. There has been recent talk about changing the aged 1933 law to accommodate the emerging asset class that is cryptoassets.

NFL Players Keep Buying Bitcoin; Binance Chain to Hard Fork

The top daily news from the cryptocurrency and blockchain space:

  • LedgerX wins regulatory nod on physically-settled bitcoin futures.
  • NFL players continue to buy up bitcoin.
  • Binance Chain set for major hard fork.

At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $12,595.5 (+11.4%) and $325.7 (+4.0%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 5,135.9 (+4.3%).

Bitcoin Ethereum CryptoCompare

LedgerX Wins Regulatory Nod on Physically-Settled Bitcoin Futures

U.S.-regulated bitcoin derivatives exchange and clearinghouse, LedgerX, had its application for designation as a contract maker approved by the U.S. Commodity Futures Trading Commission (CTFC); meaning it can now offer physically-settled bitcoin futures contracts.

With its application – which was initially filed in November 2018 – now approved by the CTFC, LedgerX will be able to list bitcoin derivatives contracts, including both options and futures, and offer them to investors, regardless of whether they are of a retail or institutional background. Such products are expected to trade on a new platform known as LedgerX Omni, the New York-based company shared in a blog post.

NFL Players Buy into Bitcoin Bull Run

How many NFL players have purchased bitcoin? At least 32.

That’s according to star NFL player and staunch Bitcoin proponent, Russell Okung, who today upwardly revised a June 17 tweet wherein he declared there were “at least 30” players in the NFL who had purchased the world’s top cryptocurrency by market cap.

Okung – who serves on the executive committee of the NFL Players Association – first updated his count on Tuesday evening (PT) from 30 to 31. Then, an hour later, he once more updated the tally to 32.

Prompting the second of the two updates was Oren Burks, a linebacker for the Green Bay Packers who responded to Okung’s June 17 tweet with the hashtag ‘HODL’, the popular term used within the crypto community when one intends to keep – rather than sell – their cryptocurrency holdings.

Binance Chain Set for ‘Galileo’ Hard Fork

Appearing on the Binance Chain community forum was a post outlining a June 26 Binance Chain testnet hard fork. The upgrade, which has been dubbed ‘Galileo’, will bring with it various changes to Binance Chain nodes, the Binance Chain client, and the fork of Tendermint upon which Binance Chain is built atop.

Some notable features of the upcoming Binance Chain hard fork include token time-locking capabilities and a newfound ability of validators to, in relation to Binance DEX, “create a delist proposal and vote on delisting trading pairs via governance.”

As for when the Binance Chain mainnet will receive the ‘Galileo’ upgrade, Tuesday’s post stated it will be “a few weeks” from now. A separate announcement will come in relation to this.