Proton says Swan Bitcoin lawsuit is ‘fatally flawed,’ seeks dismissal

October 2, 2024 Coin Telegraph

Green United loses bid to dismiss $18M crypto mining fraud suit

September 24, 2024 Coin Telegraph

Apple disputes monopoly claims, cites ‘fierce competition’ in court

May 22, 2024 Coin Telegraph

DEBT Box urges judge to toss suit as SEC got case ‘badly wrong’

December 6, 2023 Coin Telegraph

Coin Telegraph

The SEC initially misled a court to freeze DEBT Box’s assets, which has since been reversed, and the firm cited the incident as grounds to dismiss the suit.

DEBT Box and other defendants in a Securities and Exchange Commission lawsuit want the case tossed after the court found the agency lied to secure a temporary restraining order against them.

“The SEC got this case wrong. Badly wrong,” lawyers for Digital Licensing Inc., which does business as DEBT Box, told Utah federal court Judge Robert Shelby in a Dec.

The SEC won a temporary restraining order to freeze DEBT Box assets on Aug.

The agency accused the firm of perpetrating a $50 million fraudulent crypto scheme.

“Not only are such allegations false, but they also fail to meet the basic pleading standards,” it wrote in its latest motion.

A Utah federal court reversed the asset freeze on Nov.

The court found the firm didn’t close the bank accounts, and a $720,000 transfer the SEC alleged was sent overseas was actually sent domestically.

*Excerpt from DEBT Box's motion to dismiss. Source: CourtListener*

The SEC “misrepresents the state of law regarding crypto assets” in its “fatally flawed pleading,” DEBT Box said.

Atomic Wallet asks to toss suit over $100M hack saying it has ‘no US ties’

November 20, 2023 Coin Telegraph

Atomic Wallet asks to toss suit over 0M hack saying it has ‘no US ties’

Atomic Protocol Systems

The Estonia-based firm noted that only one plaintiff in the class action lawsuit is actually based in Colorado where the suit was filed.

The company behind Atomic Wallet has asked a United States court to dismiss a class action suit seeking damages from a $100 million hack arguing the claims should’ve been filed in Estonia where it's based.

In a Nov. 16 dismissal motion in a Colorado District Court the Estonian firm argued it has “no U.S. ties” and its end-user license agreement required all litigation against it be filed in its home country of Estonia.

Atomic also argued that only one user in Colorado was allegedly affected — which wasn

The firm also claimed the 5,500 allegedly affected Atomic users agreed to its terms of service which expressly disclaims liability for losses due to theft and limits damages to $50 per user

*Atomic’s motion to dismiss the class action laid against them. Source: PACER*

Atomic said the plaintiff’s negligence claims also lack legal merit because a legal duty was never created in which they were to maintain Atomic Wallet’s security and to protect against hacking.

"This Court has repeatedly rejected similar claims because Colorado recognizes no such duty,” it wrote.

Allegations of fraudulent misrepresentation were also struck down by the Estonian-based wallet provider.

The plaintiffs launched the class action in August, two months after a $100 million exploit on Atomic Wallet took place with up to 5,500 users affected — with both North Korean and Ukrainian groups blamed for the attack.

Magazine: Should crypto projects ever negotiate with hackers? Probably

Robinhood beats investors’ appeal in GameStop meme stock case

August 11, 2023 Coin Telegraph

Appeal

The appeals court judge said Robinhood “had the right” to impose restrictions on meme trade purchases.

A United States federal appeals court has upheld a decision to dismiss an investor class action lawsuit against online brokerage firm Robinhood Markets over its meme stock trading debacle in early 2021.

A total of 16 investors took part in a class action lawsuit against the trading platform in September 2021, alleging the firm restricted them from purchasing 13 “meme stocks” when hedge funds were being short squeezed in January 2021.

This stopped them reaping the profits and also caused the share prices of these stocks to plummet, they alleged.

Robinhood won a motion to dismiss the complaint in January 2022, citing the plaintiff's failure to state a claim, plaintiffs then went on to argue the decision in the U.S. appeals court in March 2023.

However, it appears the investors have hit another setback as the appeals judge has upheld the decision to dismiss the lawsuit, with U.S. Appellate Court Judge Britt Grant saying the arguments lacked legal merit.

She explained that Robinhood “had the right to do exactly what they did” because they were not legally obligated to protect these investors from pure economic loss.

This is because Robinhood was, and still is legally permitted to restrict its customers’ ability to trade securities and to refuse to accept any of their transactions, Judge Grant added.

*The U.S. Appellate Court’s concluding remarks, affirming the lower court’s decision to dismiss the plaintiff’s case.*

If the investors decide to pursue the matter further, their next and final route will be through the U.S. Supreme Court — the highest court in the U.S. However, they will need to file a petition for a "writ of certiorari," which is a document asking the Supreme Court to review the case.

The Supreme Court takes on about 100-150 cases from over 7,000 reviews, so the plaintiff’s chances of having its case heard once more are likely slim.

The GameStop short squeeze happened in January 2021, which was initially triggered by users of the /wallstreetbets subreddit.

The strategy of the short squeeze was to cause big losses for Wall Street firms shorting these particular stocks, and by doing so, profiting themselves.

Another 12 stocks became part of the frenzy, including AMC Entertainment, American Airlines Group, Blackberry, Bed, Bath & Beyond, and Trivago.

GameStop stocks were however one of the largest gainers of the Reddit-fueled price pump, increasing over 9,900% from $0.86 to over $86 between Apr. 2020 and Jan. 2021, according to Macrotrends.net.

Magazine: Blockchain games aren’t really decentralized… but that’s about to change

Motion to Dismiss