US court dismisses Bancor digital currency fraud case

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A federal judge in the United States has dismissed a case brought against digital currency firm Bancor over alleged securities fraud, after ruling the plaintiff’s lacked personal jurisdiction and had failed to demonstrate their losses.

U.S. district judge Alvin Hellerstein dismissed the class action on Monday, cancelling a hearing scheduled for March 4 at which the parties were due to set out oral arguments.

Ruling in favor of Bancor, the judge said the plaintiffs had failed to prove their losses arising from the alleged fraud, and that they lacked the necessary personal jurisdiction to bring the action on behalf of the class.

The case was brought on the grounds that Bancor had engaged in selling unregistered securities with the issue of its BNT token.

As per the filing, Bancor’s BProtocol Foundation operates under the laws of Switzerland. Lead plaintiff in the case Timothy Holsworth said his purchase of BNT tokens in Wisconsin via a Singapore-based exchange would bring the matter under the jurisdiction of the U.S. courts.

In ruling, the judge said there was not sufficient evidence that the court had jurisdiction over the Defendants, finding that New York was not a suitable place for the litigation to take place.

“The Court lacks personal or specific jurisdiction over the Defendants, and the case should be dismissed because of forum non conveniens.”

“The federal securities laws do not reach a purchase and sale outside the United States […] Wherever the current business location of Bancor, New York is not a reasonable and convenient place to conduct this litigation.”

The judge also found the plaintiff had failed to show the tokens had declined in value, or that they were purchased from Bancor in connection with its $153 million ICO back in June 2017.

The ruling is the latest failure to befall investors represented in a series of similarly unfounded lawsuits by law firms Roche Cyrulnik Freedman and Selendy & Gay.

See also: CoinGeek Live panel, Regulation of Digital Assets & Digital Asset Businesses