The Moskowitz Law Firms, led by seasoned class action lawyer Adam Moskowitz, recently filed a lawsuit against Binance on behalf of “hundreds of thousands of victims” in the state of Florida. The complaint focuses on the securities fraud regulations known as Blue Sky laws which protect investors and consumers and require securities to be offered in a truthful and accurate manner. The firm has committed their energy and resources to investigating Binance for the past year and uncovered their violations of unregistered securities laws.

It also alleges that Binance and its associated influencers, including Miami Heat star Jimmy Butler, were aware that they were selling unregistered securities, as well as being aware of their responsibilities as promoters of these securities. The Department of Justice's recent lawsuit against the exchange questioned which type of asset class BTC and ETH would fall under, securities or commodities.

Blue Sky laws are state-level securities fraud regulations and are usually only used to litigate on an individual state level when it comes to nationally exchange-traded securities, but their application to the crypto space can open up the possibility of more class actions such as the ones Moskowitz has filed. James Vivenzio, senior counsel at Perkins Coie, stated that “the state ‘Blue Sky’ theory seen here doesn’t arise in a lot of other cases when you’re dealing with nationally exchange-traded securities, because there’s a federal statute that says you can’t bring a class action for those times.”

The recent class action filied seems to suggest that the definition of the crypto space varies from state to state, and that the consequences for unregistered securities sales open marketers, promoters and sellers up to legal consequences. Adam Moskowitz has declared that his firm “will not stop until every crypto victim is made whole.” He also added that “each and every promoter of these unregistered securities, including Miami Heat star Jimmy Butler, will be held responsible” to deter future markets from deliberately hosting capital-making events without proper registration and regulatory oversight.

It remains to be seen how this class action will play out and how it will affect the crypto space. In the meantime, Floridian investors should always research thoroughly before investing in the digital asset market, as Blue Sky laws can apply to locally-exchange traded securities.



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