ChainCatcher news, according to BusinessWire, a group of investors has recently filed a class action lawsuit against the founder of the Texas-based Bitcoin mining company Rhodium Enterprises, accusing him of fraud.The lawsuit was filed by attorneys from Iacuone McAllister Potter, claiming that the defendants (including Rhodium executives and Imperium Investments Holdings, LLC based in Fort Worth) deliberately misled the plaintiffs by concealing key information and engaging in proprietary trading, resulting in a total investment of $33 million. The case has been filed in the Tarrant County District Court. The lawsuit states, "The defendants intentionally misled and deceived the plaintiffs to secure their millions of dollars in investments so that the defendants could enrich themselves and make Imperium wealthy."The plaintiffs include a dozen investors in Rhodium, who claim that important facts regarding their investments and Rhodium's business operations were deliberately concealed. Most notably, the lawsuit alleges that the defendants failed to disclose a pending transaction to sell Rhodium's operational facilities to direct competitor Riot Blockchain, a deal that directly triggered conflicts with key power contracts.

ChainCatcher news, Stronghold Digital has agreed to pay $4.75 million and 25 bitcoins to settle a class action lawsuit accusing it of exaggerating its bitcoin mining capabilities during its 2021 IPO. According to court documents, the settlement agreement was reached after a year of mediation and will be paid in installments over the next 24 months in bitcoin.The lawsuit was filed in April 2022 by plaintiffs in the Southern District of New York. Under the proposed settlement agreement, Stronghold and the underwriters (the group of investment banks responsible for Stronghold's 2021 IPO) agreed to pay compensation in cash and bitcoin after a year of mediation. The value of the bitcoin portion is based on the current bitcoin price (around $90,000), amounting to approximately $2.2 million.

ChainCatcher news, law firm Pomerantz LLP announced that it has filed a class action lawsuit against the Nasdaq-listed cryptocurrency exchange Coinbase Global, Inc., involving Coinbase and certain of its executives and/or directors participating in securities fraud or other illegal business practices.

ChainCatcher news, law firm Pomerantz LLP announced that it has filed a class action lawsuit against the Nasdaq-listed cryptocurrency exchange Coinbase Global, Inc., involving Coinbase and certain of its executives or directors participating in securities fraud or other illegal business practices.

ChainCatcher news, according to Cointelegraph, FTX creditors have voluntarily withdrawn their class action lawsuit against the American law firm Sullivan & Cromwell (S&C). The Moskowitz law firm, serving as the lead representative for the plaintiffs, stated that this withdrawal is voluntary and does not involve any settlement agreement.On February 16, 2024, a group of FTX creditors sued S&C, accusing the firm of participating in FTX's multi-billion dollar fraud and profiting from it. The lawsuit sought damages for civil conspiracy, aiding and abetting breach of fiduciary duty, and aiding and abetting fraud. S&C had served as FTX's external legal advisor in several transactions and is currently overseeing FTX's bankruptcy proceedings.Adam Moskowitz, founder and managing partner of the Moskowitz law firm, explained the reason for the withdrawal: "Based on the evidence we have seen, we believe there is not enough reason to file a lawsuit, so we have withdrawn the complaint. Now, we can sit down and work together to try to obtain the maximum compensation for the victims from other third parties."

ChainCatcher news, according to Cointelegraph, the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) have informed the U.S. Supreme Court that the class action lawsuit accusing Nvidia of misleading cryptocurrency miners during sales should be allowed to proceed.Since 2018, Nvidia has been in a legal battle with investor groups, and the case has now reached the U.S. Supreme Court.In a brief filed on October 2, U.S. Acting Attorney General Elizabeth Prelogar and SEC senior attorney Theodore Weiman argued that the lawsuit "provides sufficient detail" to allow it to continue after being dismissed in district court, adding that the Supreme Court should greenlight the restoration of the lawsuit through the appellate court.The brief further stated, "Valuable private litigation is an important complement to the criminal prosecutions and civil enforcement actions of the Department of Justice and the SEC."

ChainCatcher news, according to Cointelegraph, U.S. District Court Judge Jamel Semper dismissed a class action lawsuit against the Bitcoin mining company Iris Energy without prejudice, ruling that the investors who brought the lawsuit failed to prove that the company had ever made false statements or intentionally misled investors.The lawsuit accused Iris Energy, its executives, and its underwriters (including JPMorgan and Citigroup Global Markets) of violating the Securities Act and the Securities Exchange Act during its 2021 IPO. The plaintiffs claimed that there were several key inaccuracies in the documents related to the Australian crypto mining company's IPO in November 2021 and in other statements made in the following months. Additionally, they alleged that Iris concealed risks and failed to disclose information regarding loans for financing mining equipment, making several "false and misleading" statements about the company's overall financial condition, including its profits, losses, and assets on hand.However, Judge Semper found that Iris was not obligated to disclose all details of its loan financing, and the plaintiffs failed to prove that Iris's disclosures were materially misleading.

ChainCatcher News, U.S. District Court Judge Philip Brimmer ruled to dismiss the class action lawsuit against the Estonian cryptocurrency wallet provider Atomic Wallet. The court found a lack of jurisdiction over Atomic Wallet, its CEO Konstantin Gladyshev, shareholder Pavel Sokolov, and the affiliated software development company Evercode Infinite. The lawsuit stemmed from a hacking incident in June 2023, in which Atomic Wallet suffered approximately $100 million in losses.Judge Brimmer noted in his ruling that the connection between Atomic Wallet and the state of Colorado was insufficient to establish the court's jurisdiction over the company. The judge specifically emphasized that, given that Atomic Wallet provides software application services, it is difficult for the company to determine the specific geographical location of its users. The court granted the plaintiffs an additional 21 days to provide reasons why the lawsuit against Ilia Brusov, one of the founders of Evercode Infinite who holds 12.8% of Atomic Wallet shares, should not be dismissed.

ChainCatcher news, a Texas federal judge dismissed the securities class action against the DeFi project Bancor protocol operators. Judge Robert Pitman agreed with the opinion of the court, ruling that the plaintiffs failed to prove that U.S. courts have jurisdiction over foreign defendants.The ruling indicates that Bancor's foreign operations are not subject to U.S. securities laws, and the plaintiffs cannot sue Bancor in the U.S. for its suspension of investment protection features. The judge also noted that Bancor and its founders do not have sufficient ties to the U.S., suggesting that the plaintiffs could file a lawsuit in an Israeli court.

ChainCatcher news, according to Coindesk, U.S. District Judge Brian Martinotti in New Jersey ruled on the Coinbase shareholder class action lawsuit, partially rejecting Coinbase's motion to dismiss the lawsuit. The lawsuit stems from 2022, where shareholders accused Coinbase of misleading disclosures regarding regulatory risks.The judge found that the plaintiffs made credible allegations regarding Coinbase's behavior when describing the likelihood of the U.S. Securities and Exchange Commission (SEC) taking enforcement action. Judge Martinotti noted in the ruling document: "The plaintiffs adequately demonstrated that the defendant misleadingly described the low probability of the SEC filing an enforcement action, repeatedly emphasizing that its listed crypto assets are not securities." The SEC sued Coinbase in June 2023 for violating federal securities laws, and the case is still ongoing. In the SEC lawsuit, the judge similarly dismissed most of Coinbase's motion to dismiss, indicating that the SEC's allegations have sufficient legal grounds for further proceedings.Although the court supported some of the shareholders' claims regarding regulatory risk disclosures, it dismissed most of the other allegations in the lawsuit. A Coinbase spokesperson responded: "The court agreed to dismiss most of the plaintiffs' claims. The remaining parts are allowed to proceed mainly due to the procedural nature of the motion to dismiss. We are confident that we will stand firm on both factual and legal grounds and look forward to proving this in the subsequent litigation."

ChainCatcher news, according to The Block, NBA All-Star Jimmy Butler and cryptocurrency YouTuber Ben 'BitBoy' Armstrong have agreed to pay a total of $340,000 to settle a class-action lawsuit related to Binance, which still requires court approval.It is reported that the lawsuit accuses the two of illegally promoting unregistered securities and soliciting new customers for compensation paid by Binance, resulting in consumer losses. The lawsuit was filed in March 2023, alleging that they promoted cryptocurrencies such as BNB and BUSD as securities. The two deny any wrongdoing.

ChainCatcher news, according to U.Today, former Binance CEO Zhao Changpeng (CZ) and Binance have been accused of being involved in a new class-action lawsuit. The lawsuit was filed in a federal court in Seattle, alleging that Binance facilitated money laundering for criminals through its platform, harming consumer interests. The plaintiffs claim that Binance operates as a "cryptocurrency money laundering empire," allowing hackers, thieves, and other criminals to launder their illegal gains on the platform and profiting immensely from this activity. The lawsuit also accuses Binance of engaging in illegal extortion, violating the RICO Act.Previously, CZ pleaded guilty to money laundering violations last November and was sentenced to four months in prison in April of this year.

ChainCatcher news reports that, according to the Snapshot governance page, the Lido community voted to approve the proposal "Designate Entity to Respond to Pending Class Action Against Lido DAO."The proposal states that a private plaintiff has filed a class action lawsuit numbered 3:23-cv-06492 in the United States District Court for the Northern District of California, naming "LIDO DAO, a general partnership" as the defendant. The complaint alleges that Lido DAO is a "general partnership operating an Ethereum staking business," and that the LDO token or LDO token transactions are alleged to be securities or securities transactions, with Lido DAO accused of violating securities laws by offering or selling these securities to the public.On June 27, the court ruled that the plaintiff's actions of serving legal documents to Lido DAO through various publicly available means were lawful, and ordered Lido DAO to respond within 14 days, or face a default judgment on the claims made by the plaintiff.Therefore, this proposal suggests appointing and funding a Delaware limited liability company, Dolphin CL, LLC ("Dolphin"), to hire legal counsel (currently expected to be Brown Rudnick, led by partner Stephen Palley), without admitting and explicitly disagreeing that Lido DAO is a partnership, association, or other legally recognizable group or entity. The requested funding amount is 200,000 DAI, which is expected to be sufficient to cover the service fees of Dolphin and its legal counsel to draft, submit, and argue in support of a motion to dismiss the claims involving Lido DAO.

ChainCatcher news, according to the Snapshot governance page, the Lido community has initiated a proposal vote titled "Designated Entity Response to Pending Class Action Against Lido DAO."The proposal states that a private plaintiff has filed a class action lawsuit numbered 3:23-cv-06492 in the United States District Court for the Northern District of California, naming "LIDO DAO, a general partnership" as the defendant. The complaint alleges that Lido DAO operates as a "general partnership conducting Ethereum staking business," and that the LDO token or LDO token transactions are alleged to be securities or securities transactions, with Lido DAO accused of violating securities laws by offering or selling these securities to the public.On June 27, the court ruled that the plaintiff's delivery of legal documents to Lido DAO through various publicly released means was lawful, and ordered Lido DAO to respond within 14 days, or face a default judgment on the claims made by the plaintiff.Therefore, this proposal, while not acknowledging and explicitly disagreeing that Lido DAO is a partnership, association, or other legally recognizable group or entity, proposes to appoint and fund a Delaware limited liability company, Dolphin CL, LLC ("Dolphin"), to hire legal counsel (currently expected to be Brown Rudnick, led by partner Stephen Palley). The requested funding amount is 200,000 DAI, which is expected to be sufficient to cover the service fees of Dolphin and its legal counsel to draft, submit, and argue in support of a motion to dismiss the claims involving Lido DAO.The proposal will close for voting on July 10, with a current approval rate of 100%.

ChainCatcher news, according to CoinDesk, a U.S. judge in Massachusetts has denied DraftKings' request to dismiss a class action lawsuit filed by its NFT buyers.Buyer Justin Dufoe first filed the lawsuit against DraftKings in March 2023 on behalf of other owners, claiming that these NFTs meet the requirements of the Howey test. In this recent ruling, the court recognized that DraftKings' NFTs involve an investment of money, a common enterprise where assets are pooled, shared risks and profits, and a reasonable expectation of profits from DraftKings' efforts, thus they may be classified as securities under the Howey test.

ChainCatcher news, according to Decrypt, last Friday Keith Gill (also known as Roaring Kitty) was hit with a class-action lawsuit, claiming that his extensive promotion on social media inflated the stock price of GameStop (GME) for his own benefit. The plaintiffs voluntarily withdrew the lawsuit on Monday.The case lingered on the court's docket for only one business day, and just hours after the court issued a subpoena to Gill, requiring him to respond to the complaint within 21 days, the lawsuit was withdrawn. The plaintiffs' attorney notified the court in two sentences that they would dismiss the lawsuit without prejudice.It is reported that since the case was dismissed without any impact, the plaintiffs may refile against Gill in the future.Previous news, GMP call option holder Martin Radev, through his law firm Pomerantz, filed a lawsuit against Roaring Kitty in the Eastern District of New York on June 28, accusing him of orchestrating a "pump and dump" scheme through a series of social media posts starting from May 13.

ChainCatcher news, the civil lawsuit for securities claims against Ripple CEO Brad Garlinghouse is being heard in California. A California judge ruled that the civil securities lawsuit against Ripple will continue, partially rejecting the motion for summary judgment filed in the lawsuit alleging that Ripple's CEO violated state securities laws in 2017.U.S. District Judge Phyllis Hamilton of the Northern District of California dismissed four other claims in this class action securities lawsuit, known as the "unregistered claims."

ChainCatcher News: A judge in California has dismissed a class-action lawsuit against OpenAI and Microsoft, which accused the two companies of illegally using personal data to train artificial intelligence systems, including ChatGPT, on the grounds that the plaintiffs failed to provide a concise and clear statement.U.S. District Judge Vince Chhabria stated in his ruling that while the length of a complaint alone is unlikely to lead to a dismissal, it is appropriate to dismiss a complaint under Rule 8(a) when it is excessively lengthy and contains a significant amount of irrelevant, distracting, or redundant information. He added that, in addition to being lengthy, the complaint included numerous unnecessary and distracting allegations, making it nearly impossible to determine whether the plaintiffs' legal claims were sufficient.However, the judge noted that the plaintiffs have the right to amend their complaint, but he hopes that if the amended complaint contains irrelevant information that interferes with a clear presentation of the relevant legal claims, the amended complaint will be dismissed.

ChainCatcher news, according to financefeeds, the Ontario Superior Court of Canada has initiated a class action lawsuit against the Binance cryptocurrency trading platform, accusing it of selling cryptocurrency derivatives to retail investors without registration, in violation of securities laws.It is reported that the lawsuit seeks damages and the rescission of these transactions. It also claims that Binance's operations failed to register and file a prospectus as required by securities regulations. The court noted in its ruling: "The plaintiffs allege that these sales are illegal and void due to the lack of necessary registration."