The Tron Foundation has asked a New York federal judge to dismiss a class action lawsuit for securities violations caused by Tron’s first coin offering in 2017 that described the claims as “fatally flawed.”
The Chinese blockchain developer filed a dismissal motion on Dec. 15, claiming that the case was “unrelated” to New York. The foundation also stressed that the lead plaintiffs did not participate in Tron’s ICO and that they filed the lawsuit approximately two years after the offer closed:
“Although the plaintiffs did not buy from the first offer or from Tron, they are trying to establish a connection between their purchases and alleged Tron marketing activities.”
Tron argued that the complaint does not allege that US investors participated in the ICO.
The motion also notes that the three lead plaintiffs bought their TRX tokens through the Binance secondary exchange and claim that the lawsuit should be dropped because it violates securities laws that do not apply to purchases made in the secondary market.
Tron argued that plaintiffs’ decision to buy TRX through a secondary exchange years after the ICO had no connection with the Tron Foundation.
The defendants also denied allegations that Tron’s 2017 whitepaper was misleading by classifying TRX tokens as non-securities.
“That allegation was not even made in the original complaint and it is merely an ex-post litigation.”
The lawsuit was filed on April 3, the same day that ten more lawsuits were filed in the South District of New York against crypto exchanges and issuers, all of which alleged distribution of unregistered securities.
Tron ran its ICO from August 24, 2017 to September 2, 2017 and raised $ 70 million for its TRX tokens, which have been designated as the mother currency for its online platform.