Economics of Blockchain Litigation Webinar Series: ICOs and Securities Laws and Trends in Litigation

The SEC alone has brought fifty-one enforcement actions in the context of initial coin offerings (ICOs) and other digital assets. Other agencies, like the FTC, CFTC, IRS, and the Treasury, are also involved in blockchain regulation.

For a token to be an effective means-of-payment token, the growth rate should not exceed the opportunity cost of capital.

In the first half of this webinar, Prysm Group's Dr. Stephanie Hurder presents: Economics of ICOs and Securities Laws.

  • In SEC v. Telegram, federal regulators argue that a $1.7 billion sale of unregistered securities was illegal. In his opening remarks, the judge focused on the transaction’s “economic realities.” How can economics inform whether digital assets qualify as securities, and how might these be valued?
  • In Balestra v. ATBCoin, investors sued a token issuer that overpromised on the project’s underlying blockchain technology. How should firms manage expectations of profits surrounding an emerging technology like blockchain?
  • In Fabian v. LeMahieu, investors brought a class action against Nano, a company that lost $170 million worth of crypto. What best practices constitute due diligence, and how much would they cost token issuers?

In the second half, Murphy & McGonigle's Daniel Payne presents: Trends in Blockchain Litigation.

This section highlights trends in blockchain litigation in the United States and examine key rulings that impact the sector. The talk will incorporate data analytics from Murphy & McGonigle’s proprietary Blockchain Litigation Database, which tracks blockchain litigation, both civil and criminal, public and private, in the United States. This talk will highlight trends in blockchain litigation in the United States and examine key rulings that impact the sector. The talk will incorporate data analytics from Murphy & McGonigle’s proprietary Blockchain Litigation Database, which tracks blockchain litigation, both civil and criminal, public and private, in the United States.

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Economics of Blockchain Litigation Webinar Series: ICOs and Securities Laws and Trends in Litigation