Bibox proposes lawsuit for unregistered issuance of securities

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A lawsuit accusing Crypto Exchange Bibox of selling six unregistered securities was dismissed in a U.S. district court after Judge Denise Cote ruled that the plaintiff failed to resolve the complaint within 12 months of trading the tokens had submitted.

Plaintiff Alexander Clifford filed the class action lawsuit on June 3, 2020 to reclaim investments he previously made in Bibox’s native BIX token alongside Eos (EOS), Tron (TRX), Aave (LEND) and Aelf (ELF) had) on behalf of other investors.

The lawsuit alleged Bibox selectively withheld information from investors in order to hide the fact that the tokens contained unregistered securities while also facilitating asset trading in October 2017. The lawsuit highlighted Bibox’s apparent failure to register its BIX token with regulators.

However, the case was dismissed relatively easily on April 16, with the judge ruling that Clifford’s final BIX transaction took place around December 2018 – outside of the 12-month deadline for securities claims.

“Plaintiff’s claims regarding BIX are being dismissed as being statute barred by the statute of limitations,” said Judge Cote.

The judge also found that the lead plaintiff did not stand by the claims against the other five tokens because Clifford had only traded BIX and was unable to prove how other class members were harmed by the sale of the other tokens.

“The plaintiff did not claim that he was actually injured by the defendants’ behavior in relation to the five tokens he did not purchase.”

The first lawsuit was filed as part of a wave of complaints filed by the law firm Roche Freedman in 2020. The firm alleged the various leading crypto exchanges and token issuers, including KuCoin, Block.One and Tron Foundation, had breached securities.

While several of Freedman’s complaints have been dismissed by the courts, the lawsuits against Binance and Bitmex operator HDR Global are still ongoing.