Recently, during the beginning of this month, a court filing revealed about a lawsuit filed in the United States district court in New York declaring that an investor was fooled into making an investment of $2 million in the cryptocurrency ‘MCash.’
The filing claimed that the petitioner Lijun Sun transferred $2 million to New-York based investment group Blue Ocean Capital Group, Inc. to buy MCash tokens. The filing stated that “Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission (SEC), but more importantly, in connection with selling the MCash Token, Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million.”
Further, the documents which were submitted to Sun did not denote the tokens nor the conditions for buying them. Only Post purchasing the tokens, Sun realized that he needed to enter into a separate agreement dubbed as Token Purchase Agreement with a other company instead of Blue Ocean Capital. This arrangement was reportedly not disclosed initially by Blue Oceans. There was no legal market in the U.S. with respect to the MCash Tokens as it is categorized as unregistered securities.
As per the documents submitted to the court, the petitioner is eligible to cancel the contract of his capital investment along with claiming compensatory damages which were valued at $6 million. Sun confirms that few defendants are also involved in the whole process which acted on behalf of Blue Ocean Capital in the execution of committed federal securities fraud and common law fraud.
The further also stated that in the event of Sun knowing these facts in the initial stage, he wouldn’t have invested his funds with Blue Ocean Capital. The petitioner also confirmed that at an in-person meeting with Antony Liu, the firm’s president, Liu “acknowledged that he was aware that the transaction in which he engaged with [the] Plaintiff was not legal in the United States and that he could be exposed to charges of fraud.“
Data on Etherescan reflects that MCash, an ERC-20 token, is being held at two addresses and the value of the same is $0.00 at 0 Ethereum (ETH). Although, Blue Ocean Capital’s website was down, a video on YouTube still prevail in which the company’s head was celebrating its grand opening in New York. The video praises recognitions and awards from Nasdaq’s senior vice-president Robert McCooney and Felix Ortiz, the Assistant Speaker of the New York State Assembly.