As Asia Crypto Today reported this week, Elastos and Huobi founders have both had Investors based in the US attempting a class-action suit against them- accusing them of unauthorized sales of securities in the US.
Now according to an exclusive report from local media company, Huoxing24, the Elastos co-founder, Han Feng, has responded to the accusation of selling illegal tokens by confirming the rumors of legal action taken against him and then by staunchly affirming his legality in the case.
Feng said that he would vehemently defend himself from the legal challenge, which has come from Mark Owen and other investors who launched a class action lawsuit against Elastos to the New York Supreme Court. The full response is below:
Mark Owen and others believe that the Initial Coin Offering (ICO) from Huobi and Elastos launched last year, violated the fifth law of the US Securities Act of 1933. The regulation stipulates that all securities sold must first be registered with the US Securities and Exchange Commission (SEC).
It is just in its early stages, but this could prove a huge moment and a potentially very damaging case for both Huobi and Elastos. The strong response from Feng and Elastos means they will not go down without a fight. Watch this space for more updates.