Block.one to pay investors $27.5 million to settle EOS ICO class-action

Block.one, the company behind the EOS project, announced that it had settled the dispute with investors. The court closed the case on terms requiring the defendant to pay $27.5 million.

An update on the class action lawsuit involving https://t.co/LgcclYBd6L. https://t.co/Tr9HbMUnOq

— block.one (@block_one_) June 11, 2021

«Block.one считает, что этот иск был необоснованным и содержал множество неточностей. Тем не менее, приняв это соглашение, мы сможем сосредоточить больше времени и усилий на управлении собственным бизнесом и запуске новых продуктов», — говорится в пресс-релизе.

In May 2020, the Crypto Assets Opportunity Fund accused the company that EOS’s 2017–2018 ICO, valued at $4.2 billion, was accompanied by misleading statements.

Plaintiffs alleged that Block.one provided investors with false information about the project in an effort to raise billions of dollars from the sale of unregistered securities.

According to the filing, the company allegedly stimulated the price of EOS through “aggressive” marketing.

In October 2019, Block.one reached an agreement with the U.S. Securities and Exchange Commission to pay a $24 million penalty. The regulator alleged that the company violated securities laws.

As reported in May 2021, Block.one invested $10 billion in the launch of its own Bitcoin exchange, Bullish.

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