Two teams of lawyers have filed competing motions to lead plaintiffs in a lawsuit against Block-one, the company behind the cryptocurrency EOS for selling unregistered assets in violation of federal securities laws, reported Reuters.
Lawyers at Selendy & Gay and Roche Cyrulnik Freedman are representing investor Chase Williams, Token Fund I and others while lawyers at Grant & Eisenhofer and the Bluhm Legal Clinic of the Northwestern Pritzker School of Law are representing the Crypto Assets Opportunity Fund.
The latter ones filed a class action lawsuit last month, alleging that the blockchain software firm defrauded investors through a year-long illegal initial coin offering (ICO) that left them with tokens that become virtually worthless.
Both the firms filed their motions on Monday in the U.S. District Court for the Southern District of New York.
In a separate announcement, the Schall Law Firm said it is investigating the claims on behalf of EOS digital tokens’ purchases against Block.One for violations of the securities laws.
The national shareholder right litigation firm’s investigation is focusing on whether the company issued false or misleading statements and if it failed to disclose information pertinent to investors.
“Specifically, Block.one failed to create and file a Registration Statement for the securities it was offering and selling.”
The law firm is also encouraging investors with losses of $100,000 to contact the firm.
EOS was the biggest ICO ever that raised $4 billion in 2017. Last year, it paid a $24 million settlement to the SEC, leaving investors holding the bag of the 9th largest token that currently values at $2.66, the biggest loser among the top 25 cryptocurrencies.
Meanwhile, Daniel Larimer who created EOS wrote about “Revisiting Transactional Statistics of High-scalability Blockchain,” where he talked about EOS processing 2x the transactions throughput as Ethereum, the second-largest network is capable of.