Another ICO Draws a Securities Class Action Lawsuit

According to news reports, the amount raised through Initial Coin Offerings (ICOs) in 2017 now exceeds $4 billion. This surge of activity has drawn the attention of regulators. The SEC is clearly stepping up its ICO-related enforcement activity. ICOs are also drawing the attention of securities class action plaintiffs’ attorneys. As I noted in a prior post, plaintiffs’ attorneys have filed several securities class action lawsuits in connection with the Tezos ICO early this year. Now plaintiff attorneys have filed yet another ICO-related securities class action lawsuit, in this case involving the high-profile and controversial Centra Tech ICO.   Background Between July 30, 2017 and October 5, 2017, Centra ran an ICO in which the company raised over $30 million in digital currency investments in exchange for Centra tokens. The stated purpose of the offering was to fund the company’s business plan to launch a debit card that would link to digital wallets…

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