Investors reportedly summon Elastos Foundation, Huobi and HBUS to court

Posted 14 February, 2019

A group of US investors under Mark Owen lodged a claim against Elastos Foundation, Huobi and its US division HBUS citing violations of Section 5 of the Securities Act 1933 which requires registration of the securities with the US Securities and Exchange Commission.

"This is a proposed class action pursuant to Section 12(a)(1) of the Securities Act, 15 U.S.C.A. §77l, and Section 15(a) of the Securities Act, 15 U.S.C.A. §77o. The FILED: NEW YORK COUNTY CLERK 01/31/2019 02:49 PM INDEX NO. 650628/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 01/31/2019 1 of 3 subject matter of this action concerns the defendants' solicitation and sale of unregistered securities," reads the claim.

The plaintiffs insist that the defendants ignored effective US regulation and failed to register the ELA tokens with the SEC. Moreover, it was also stated in the claim that none of the defendants was registered "as a broker or dealer as required by law to legally sell securities in the United States," which actually mandatory in line with the current rules in the USA.

For reference, Elastos is a Chinese project which is trying to create a world wide web on the blockchain. In January 2018. the company was reported to complete a funding round with about $94 million investments.

As of today, its tokens are traded 90% below the initial ICO price. The company’s whitepaper reads that ELA tokens are utility tokens; they can be used to trade or exchange assets on the Elastos blockchain platform as well as to pay network fees. Investors were asked to block ELA tokens for 3 years in order to receive a 6% bonus, but the program was closed prematurely. In the circumstances, more than 100 Chinese investors signed an open letter accusing the company of fraud and manipulation.

The lawsuit was reportedly filed on January 31 but has not been signed by the district secretary so far. As a result, it cannot be referred to as an official procedural document. Elastos Founder Rong Chen said he is going to challenge the charges, declaring that plaintiffs’ action is groundless. 

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14 February, 2019 16:41

← Coinmotion adds XRP but doubts its crypto nature

Finnish cryptocurrency exchange Coinmotion announced adding of XRP to the platform's listing. Moreover, the company also expressed an opinion that XRP hardly looks like crypto at all. The decision to list XRP on the exchange was based on the requests that came from the users. The company representative Pessi Peura mentioned not only XRP’s advantages but also he expresses certain amoung of critics regarding the cryptocurrency. The crypto is developed by only one company, which entails certain risks that other cryptos do not have.

Coinmotion adds XRP but doubts its crypto nature

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14 February, 2019 14:34

China reports higher exports in dollar terms, but imports still negative →

China recorded a jump in imports and exports supplies in January expecting the Lunar New Year and further progress in trade take with Washington. The available data released by China's General Administration of Customs show that exports from China soar by 9.1% over the period under review. At the same time, the volumes dropped by 4.4% last December. As for the imports, shipments decreased at slower pace reaching 1.5% compared to 7.6% decline a month before. As the statistics shows, exports to the USA dropped by 2.4% to $36.54 billion over the period under review, whereas imports from the US plunged by 41.2% to $9.24 billion.

China reports higher exports in dollar terms, but imports still negative
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