Legal Battle Unfolds: HelbizCoin Investors Win Court Ruling in Class-Action Lawsuit
Investors in the cryptocurrency HelbizCoin have just won a major court ruling in a class-action lawsuit against the company that developed the token. The suit, which was filed in early 2019, alleged various violations of securities laws by Helbiz’s founders.
The court found in favor of the investors, ruling that HelbizCoin was, indeed, a security rather than a purely virtual currency and that the company had violated various US securities laws in its promotion of the token, including not registering the security with the SEC.
This ruling is significant because it is the first time that a court in the United States has officially recognized a blockchain-based token as a security. Previously, many companies had been able to avoid being regulated as securities by taking steps to limit the ability of investors to easily buy or sell them.
As a result of this ruling, HelbizCoin investors now have the potential to receive significant compensation from the company. The amount of damages is still to be determined, but the ruling puts pressure on the company to do right by its investors.
This case has wide-reaching implications throughout the industry. It shows that regulators and courts are increasingly recognizing digital assets as legitimate securities and will not tolerate attempts to circumvent the law. For investors, this means more protection and greater clarity about their rights under the law.