The second entry in a series of blog posts focused on trends and analytics derived from Murphy & McGonigle's Blockchain Litigation Database.

The first entry in a series of blog posts focused on trends and analytics derived from Murphy & McGonigle's Blockchain Litigation Database.

How To Defend Against New Wave of Cryptocurrency Class Actions

The author examines the decisions in SEC v. Telegram and how they may impact digital token issuers’ use of the Simple Agreement for Future Tokens model for distributing tokens.

The Southern District of New York has issued two main rulings in SEC v. Telegram—that the offer and sale of Telegram’s cryptocurrency (Grams) involved a "scheme" to distribute securities subject to 1933 Act registration requirements, and that the Court’s preliminary injunction regarding sales or resales of Grams applies to both U.S. and non-U.S. purchasers. Murphy & McGonigle’s Larry Bergmann examines both rulings and weighs the impact they might have on future issuances of digital tokens. Among other things, Bergmann believes that the decisions will make it more difficult for digital token issuers to argue that securities sold to raise capital can be transformed at a later date into "utility" digital assets that are not securities. He also raises the question of whether improvements can be made to an operational cryptocurrency platform to enhance the value of that platform’s tokens.

To read the entire article, click here.

The Massachusetts Digital Government Summit in Boston, MA, on November 10th promotes industry best practices and innovation in the public sector. The summit seeks to bridge the gap between the public and private sectors through keynotes, technology discussions, educational issues, and networking. Both public and private sector IT leaders will discuss topics in digital government trends, emerging technologies, cybersecurity, data analytics, innovation, and collaboration.

 Linda Lacewell, Superintendent of New York Department of Financial Services will headline the 2020 Fordham Law Blockchain Regulatory Symposium. The symposium on November 9th at Fordham University School of Law welcomes industry leaders to explore how existing laws and regulations lead to tensions or conflicts with blockchain technology. Panelists will speak on how this new technology is changing how legislators, regulators, and courts address various regulatory challenges in the blockchains rapidly developing field.