As per a recent news correspondence, an investor has filed a lawsuit in a United States district court in New York claiming that he was misled into investing 2 million dollars in one of the cryptocurrencies, MCash.
The filing states that Sun who has filed the suit had reportedly transferred around $2 million to a New-York based crypto firm and investment group called Blue Ocean Capital Group to purchase MCash tokens. Mcash Token is not registered with the U.S. Securities and Exchange Commission (SEC). MCash Tokens is also unregistered security for which there is no legal market in the U.S. There are also evidence wherein Defendants have made numerous misrepresentations and omissions in connection with the selling of Mcash Token.
Earlier, Sun did not validate the documents which were provided during the time of his purchase. Once the purchase was completed, Sun realized that he would have to get into a separate Token Purchase agreement with another company which was not disclosed earlier which defendants did not disclose.
As per the order of the court, Sun would be getting back his investment along with compensatory damages of $6 million. Sun also claimed that some of the defendants who represented Blue Ocean Capital had been known to commit securities fraud and other financial frauds.
As per the filing report, Sun would not have been interested in investing the funds with Blue Ocean Capital in the initial phase if he would have been aware of these facts. At an unofficial meeting with Antony Liu who is the firm’s president, Liu accepted the fact that he was fully aware that the transaction was not legal in the United States and three was a possibility of being charged with fraud.
As per the pricing structure on Etherescan platform, Mcash which is an ERC-20 token is valued at $0.00 and shows two different addresses. Currently, Blue Ocean Capital’s website is not functioning but a video which shows the grand opening in New York is active on YouTube.
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Ether is a cryptocurrency whose blockchain is generated by the Ethereum platform. Ether can be transferred between accounts and used to compensate participant mining nodes for computations performed. Ethereum provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.