Another class action lawsuit is filed in connection with the ICO
Another securities class action lawsuit was filed by the private investors against Dfinity group of entities as well as Polychain Capital and Andreessen Horowitz in connection with the sale of Internet Computer Project tokens (“ICP”). The ICP is a native cryptocurrency of the Dfinity Internet Computer Project, which “purports to be a decentralized version of the internet itself. In essence, it is a smart contract platform designed to power blockchain versions of the internet’s most popular applications – decentralized alternatives to WhatsApp, LinkedIn, eBay, TikTok, etc. – which would displace the need to use centralized, gatekeeping hosting services like Amazon Web Services,” according to the complaint.
The complaint also alleges that 469,213,719 ICP “were created out of thin air by Dfinity.” The sale proceeds were used to fund the company’s operations. And at least 25% of all ICP were given to Polychain Capital and Andreessen Horowitz, which made them “significant stakeholders of ICP.”
The complaint describes in great detail the efforts made by the entities to promote ICP and further alleges that the ICP tokens qualify as securities under the U.S. securities law. However, the sale of ICP was not registered with the securities regulator in violation of the U.S. securities law. The complaint seeks rescission of the ICP purchases, compensatory damages, interests and other relief.