Bibox wins lawsuit over sale of unregistered securities

A U.S. court dismissed the lawsuit against the Bibox bitcoin exchange, with the plaintiff alleging the trading platform sold unregistered securities. This was reported by Law360.

In June 2020, 11 cryptocurrency companies, including Binance, Bibox, and BitMEX, faced class-action lawsuits. The filings alleged that each of the defendants traded tokens with the properties of securities.

According to the plaintiff plaintiff Alexander Clifford, Bibox allegedly misled investors and could not register its native token BIX with regulators.

On April 16, 2021, the court dismissed the case due to the statute of limitations. The judge also noted that Clifford cited tokens in his complaint that he did not personally purchase.

In May 2020, Bitcoin Manipulation Abatement LLC accused Ripple and its CEO Brad Garlinghouse of selling more than $1 billion worth of unregistered securities and violating advertising laws.

Earlier in December, the U.S. Securities and Exchange Commission (SEC) filed suit against the company. The defendants also included Brad Garlinghouse and co-founder Chris Larsen.

In February 2021, the SEC clarified the liability of Garlinghouse and Larsen. The agency said that they manipulated the token price. Later, the regulator requested data from six banks regarding the personal financial transactions of Ripple’s executives over the past eight years.

Lawyers for the company asked why the SEC does not classify Bitcoin and Ethereum as securities. In April 2021, the court ordered the agency to disclose “interpretation and views” regarding the two largest cryptocurrencies by market capitalization.

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