ATB and the class action lawsuit
One can now add ATB to the list of companies that have conducted an ICO and have run into issues afterward. This latest company has run into problems because they might not have adequately represented the token offering. This lack of clarity made the investors feel as if they exchanged their currency for a token that may not have been classified in the manner that they believed it to be.
The Plaintiffs, which filed the claim in the state of New York, state that the company, ATB, is in violation of securities laws. The defendants believe that the token can be considered as security, and if the released token can be viewed as such, it would be necessary for the issuing company to register with the proper regulatory authorities and represent it as such. The plaintiffs are not questioning the legitimacy of the company; they are questioning the nature of the Initial Coin Offering. Does it classify as a security or not?
The plaintiff’s case can be summarized via their comment:
“The ATB ICO was a clear offer and sale of securities because, inter alia [among other things], Defendants touted, and Plaintiff and other ATB ICO investors reasonably expected, that the ATB Coins received in exchange for their investments would be worth more than the ETH, BTC, LTC or other currencies invested.”
ATB and it’s Initial Coin Offering
What is ATB?
The company states that the ATB Coin provides value because it incorporates all the best features available in the new blockchain-based currencies into its coin. The team over at ATB also states that they’ve built a full scale – investment platform capable of organizing the financial assets of users by using the world’s most secure and reliable payments system. ATB, which stands for Alternative Technology Base, aims to offer a state of the art technology solution, with the aspects of Segwit and the Lightning Network already integrated. These integrations, according to the company, allow for secure and near zero cost payments to anyone in the world. The company aims to iron out the current issues in cryptocurrency domain, such as the increasing number of attacks and forks, transaction fees, lack of malleability and more.
ATB was able to raise 20 million dollars in the raise. The team at ATB deployed their ICO in June and concluded the fundraising event in July.
Investors claim that the company had various stages in their funding cycle and carried their fundraising event through the September by launching the second phase in August.
The company blog posts align with these statements, as they did extend their crowd sale and proceeded to distribute tokens in September.
Their tokens are currently trading at the price of $0.480 on exchanges like YObit.net, HitBTC, TOPBTC, and btcalpha.com.
The team over at ATB stated in a blog post that they have abided by the law and that they never accepted investment funds from American citizens.
“We want to remind you that from the very beginning of the project, ATB Coin never accepted investment funds from American citizens. All users of the platform accepted the terms and conditions of our Offer and agreed with the point that they are not residents of the United States. This condition has always been and is mandatory when registering at atbcoin.com.”
The company stated further:
“At the moment, the ATB Coin investor can be a citizen of any other country and must obey the rules operating on its territory. These conditions are indicated in the clauses of our Offer (https://atbcoin.com/contract-offer-en/). All users must accept the terms of this Offer upon registration to confirm acquaintance with the specifics of the cryptocurrency and the possible risks.”
The need for clarity on token offerings
If more cases like ATB, Tezos, and Centra continue to present themselves, regulators like the Securities Exchange Commission will be forced to step in and clarify which sort of ICO tokens are securities and which are not.