A lawsuit that was filed in a district court in New York is claiming that an investor was led into investing $2 million dollars in the cryptocurrency MCash.
This is according to a court filing earlier this week.
The filing said that the plaintiff Lijun Sun moved $2 million to New-York based investment group Blue Ocean Capital Group, Inc. to buy MCash tokens, saying:
“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.”
According to the court documents, the plaintiff is entitled to recission of his investment along with compensatory damages worth $6 million. Sun also claims that some of the defendants, on behalf of Blue Ocean Capital, committed federal securities fraud and common law fraud.
Sun would not have put in the funds with Blue Ocean Capital, if he had known all along of these facts, the filing claimed. The plaintiff also asserted 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 indicates that MCash, an ERC-20 token, is kept at two addresses and is worth $0.00 at 0 Ethereum (ETH). Blue Ocean Capital’s website is down, but a video commemorating its grand opening in New York can still be seen on YouTube. The video features recognitions and awards from Nasdaq senior vice-president Robert McCooney and Felix Ortiz, the Assistant Speaker of the New York State Assembly.