If there’s anything to take away from this federal class-action suit, it’s that this new opinion on ATB Coin provides further guidance on when a token might be considered a security under securities law in the United States.
For those with a legal background, this piece is set up in a similar way to a case brief you probably remember from law school. But even without a legal background, here’s some guidelines on how to read this.
Going down the legal rabbit hole
Pursuant to §12(a), Defendants offered and sold unregistered securities in the form of ATB coins, andPursuant to §15(a), ATB’s co-founders, Edward Ng and Herbert W. Hoover III, as “control persons” of ATB. Lack of personal jurisdiction (Federal Rule Civ. Procedure, 12[b][2]), andFailure to state a claim, on the theory that ATB coins were not “securities” based on the pleadings, pursuant to 12(b)(6) of the Federal Rules of Civil Procedure.Was there an investment of money?Was there a common enterprise?Was there an expectation of profits predominantly from the efforts of others?Legalese aside, what you need to know
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