Southern District Of New York Dismisses Claims Against Cryptocurrency Platform Seeking To Hold It Liable Under The Securities Laws For Alleged Fraudulent Transactions On Its Platform
09/06/2023
On August 29, 2023, Judge Katherine Polk Failla of the United States District Court for the Southern District of New York dismissed with prejudice a putative class action against a decentralized cryptocurrency trading platform and certain of its investors under Section 12(a)(1) of the Securities Act and Section 29(b) of the Securities Exchange Act. Risley v. Universal Navigation Inc., 2023 WL 5609200 (S.D.N.Y. Aug. 29, 2023). Plaintiffs alleged that they purchased fraudulent cryptocurrency tokens on the exchange. The Court held, assuming but not deciding that the tokens were securities, that plaintiffs failed to state a claim for rescission.