A class action complaint has been filed against Giga Watt by StormsMedia, Inc on December 28th, 2017. If you have invested into the Giga Watt ICO, and you have concerns, you may read the complaint below. Also see the links in this post for more information around the class action complaint. Please leave some comments on my blog, if you have invested in this token. I want to hear from those of you who may know more.
https://www.silvermillerlaw.com/wp-content/uploads/2017/12/Doc-1-Class-Action-Complaint.pdf
The following is a statement provided by https://www.silvermillerlaw.com/
On December 28, 2017, Silver Miller and Terrell Marshall filed a Class Action Complaint against Giga Watt, Inc. It is important for investors in companies that raise funds utilizing an Initial Coin Offering to know that all pre-functional token sales fit the U.S. laws’ definition of the sale of a security, which means the seller either has to comply with U.S. securities laws by registering the product or obtain a government-granted exemption from those laws before conducting the sale. In this case, the defendant -- whether intentionally or not -- did neither and is therefore strictly liable for offering and selling unregistered securities. Just because utility tokens might one day have a consumptive use does not remove them from being a “security” prior to that use. Promoting the expectation of profit from pre-functional tokens, like Giga Watt did and continues to do, is by definition the sale of a security; and this case will hold Giga Watt accountable for its actions.
A close friend of mine was an early investor into this once promising ICO. I was also interested in the ICO, and he explained the idea behind the Giga Watts mining services and the token rental option. At the time, I was not interested in mining cryptos, but I liked the idea of investing into the WTT token, which can be used as a rental token that represents a certain amount of power for those who are mining. According to their whitepaper, The WTT token is "an Ethereum token representing the right to use the Giga Watt processing center's capacity, rent-free for 50 years, to accommodate 1 Watt's worth of mining equipment power consumption". The whitepaper goes on in more detail. You can read more about the token in the PDF link below.
https://cryptonomos.com/wtt/white-paper.pdf
https://giga-watt.com/
My friend invested around $1000 into this ICO at the time, and purchased the majority of his tokens in early summer of 2017. His tokens were not released by the dates that were scheduled in late July. He emailed the team at Giga Watt. I was told that he never received a response to multiple inquiries regarding the delay in issuing the WTT tokens by Giga Watt. At the time there was very little news of progress surrounding the ICO, explaining why they were experiencing a delay of the release of the WTT tokens. Eventually, it was discovered that they had ran into legal issues. Most of which had not been made public to early investors. The only news coming out was through the Telegram app.
The complaint has now surfaced by StormsMedia, and is raising alot of questions and caused FUD among investors. It is unfortunate that Giga Watt did not consider the legalities of US securities laws prior to promoting the WTT token to early investors. There is alot of investor money that has potentially been lost because of this debacle in my opinion. I do not want to bash Giga Watt. I would like to believe that they have good intentions. Hopefully they can turn the businsess venture around and make good with their investors. I myself, am disappointed. This seems like a great idea, but the planning around the legal issues was not cleared for investors.
Maybe everyone will still win in this. Time will tell. I am personally watching this news closely. If anyone here has invested in the WTT token with Giga Watt, please leave me some comments. I would like to hear other stories of what people may think. I hope this content has been resourceful and helpful. PLEASE UPVOTE THIS CONTENT and share it with anyone who may have interest in this information.
Thank you,
Dogeman