Investors who settled against the self-proclaimed „world’s fastest blockchain“ ATBCoin LLC have requested that a New York federal judge intervene to enforce the $250,000 settlement.
In April, the lead plaintiff in a class action lawsuit brought against Bitcoin Trader over its initial 2017 currency offering, or ICO, which raised $20 million, agreed to a proposed $250,000 settlement.
The lawsuit claimed that ATB had distributed securities without a license and had not registered with the U.S. Securities and Exchange Commission, or SEC.
However, in May, ATBCoin’s representation stated that the company could no longer afford the settlement „due to a change in circumstances“, and the lawyers requested to withdraw from the case as their legal fees could no longer be paid.
The lead plaintiff proposes to settle the class action complaint by requesting USD 250,000 from the ICO which was made for USD 20 million
ATBCoin claims to have empty pockets
On June 16, the plaintiffs urged the court to enforce the $250,000 agreement signed in April, claiming that the letter submitted by ATB’s lawyers did not explain the firm’s „sudden inability to pay.
The lead plaintiff proposes to settle the class action suit by requesting USD 250,000 from the ICO which was made for USD 20 million
„Without further details about the defendants‘ alleged inability to fund the settlement, the lead plaintiff cannot fully determine whether and when the defendants became insolvent and whether the defendants fraudulently entered into the stipulation in the first place,“ the application states.
Plaintiffs also emphasized that „the defendants specifically stated in the stipulation that they could fund the settlement and would not be insolvent at the time of payment of the settlement amount.
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ATBCoin launch fails
Lead plaintiff Raymond Baletrta filed the suit during September 2017, accusing the company of not meeting the expectations of its marketing rhetoric, which claimed that the ATB block chain would build „the fastest cryptographic network in the Milky Way galaxy.
While the tokens were issued for USD 1 in June 2017, and then USD 2.50 in September, in March 2018, the disappointing launch of the ATBCoin platform left investors with losses of over 80%.