Another fraud has surfaced within the crypto funding trade as an investor filed a lawsuit towards New-York primarily based funding agency Blue Ocean Capital Group for deceptive him right into a $2 million greenback funding.
According to the February 1 courtroom filings, the plaintiff Lijun Sun, a Chinese citizen and a California resident, has transferred $2 million to Blue Ocean Capital Group to speculate the cash in MCash.
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However, MCash is among the doubtful tokens available in the market and isn’t correctly registered with the United States’ Securities and Exchange Commission because it falls underneath securities class.
“Not solely was the MCash Token not correctly registered with the U.S. Securities and Exchange Commission (SEC), however extra importantly, in reference to promoting the MCash Token, Defendants made quite a few misrepresentations and omissions that induced Plaintiff to speculate $2 million,” the courtroom submitting acknowledged.
MCash is an Ethereum-based ERC-20 token with no change itemizing and is valued at $0.00. Moreover, there isn’t any readability on the event of the challenge both.
Blue Ocean didn’t disclose the dangers related to the funding and even withheld info within the phrases of the acquisition. Only after shopping for the tokens, Sun realized that he must enter right into a Token Purchase Agreement not with Blue Ocean Capital, however with one other firm, which defendants purportedly didn’t disclose.
The filings present that Sun is looking for recission of his investments together with compensatory damages price $6 million from the funding agency.
A Classic Fraudulent Firm?
Blue Ocean Capital, itself is a controversial entity. The agency doesn’t have a a lot public presence, with solely a promotional video of its launch occasion from mid-2018. The video promotes it because the recipient of awards from Nasdaq senior vice-president Robert McCooney and Felix Ortiz, the Assistant Speaker of the New York State Assembly.