An investor sued Nasdaq-listed cryptocurrency mining agency Riot Blockchain for $728,200 that the investor owes in one other contract breach lawsu
An investor sued Nasdaq-listed cryptocurrency mining agency Riot Blockchain for $728,200 that the investor owes in one other contract breach lawsuit.
In accordance with courtroom paperwork filed on April 3, the aforementioned sum is the cash Riot Blockchain investor Barry Honig and consulting agency GRQ Consultants spent on the authorized proceedings over the contracts between the events. The submitting reads:
“The entire agreements include strong indemnification provisions which require Defendant to defend and indemnify Mr. Honig and GRQ towards any subsequent lawsuits or claims ‘with respect to any of the’ securities purchases that they made, and/or ‘any violation or alleged violation by [Defendant] of the Securities Act, [or] the Trade Act.’”
Securities regulation violation lawsuits
In accordance with the paperwork, in March 2017 Honig and GRQ — of which he served as a trustee — entered into securities buy agreements and registration rights agreements with Riot Blockchain for $1,725,000 million. The subsequent yr a number of authorized proceedings had been moved towards Honig and GRQ alleging that the securities transactions included within the contract violate the rules. The submitting reads:
“Honig vigorously denies every one of many claims asserted towards him in these proceedings, and has expended important sums to mount his protection.”
Nonetheless, whereas Honig believes the authorized actions towards him to be unfounded, he claims that these lawsuits set off the indemnification obligations to him and GRQ. Riot Blockchain, then again, refused to cowl the authorized charges in query, and the plaintiffs level out that the agency’s most up-to-date quarterly report exhibits that it held over $20,324,000 of belongings.
Lawsuits in crypto
The cryptocurrency business, as every other area with a big amount of cash concerned, sees a lot of lawsuits. As Cointelegraph just lately reported, seven cryptocurrency corporations had been focused in lawsuits filed within the New York federal courtroom on April 3.
Yesterday, Cointelegraph additionally reported that an entity representing the greater than 100 victims of the alleged $35 million Q3 Ponzi scheme filed a class-action lawsuit towards Wells Fargo Advisors.