Sichenzia Ross Ference Kesner LLP Attorneys Mendy Piekarski and Jay Kaplowitz Achieve Successful Settlement of Cryptocurrency Lawsuit
New York, NY – May 21, 2018 – Nationally recognized securities and corporate law firm Sichenzia Ross Ference Kesner LLP (SRFK) recently achieved a successful settlement on behalf of a cryptocurrency investor.
The investor had invested in Dragonchain, Inc.’s initial coin offering (ICO). ICOs are a recently-developed form of fundraising in which an entity offers participant investors its unique “tokens” or “coins” in exchange for a specified consideration, such as virtual- or crypto-currency. While the investor invested approximately 7% of the capital raised in the ICO, Dragonchain had refused to deliver the coins pursuant to the ICO’s terms. Thereafter, the value of the Dragonchain coins appreciated significantly, such that the investor’s coins achieved a trading value of approximately $79 million USD on the secondary market. On behalf of the investor, SRFK commenced an arbitration against Dragonchain for the delivery of the coins, as well as a lawsuit in Washington Superior Court for an attachment of Dragonchain’s assets (including its crypto-assets) in aid of the arbitration. Shortly thereafter, Dragonchain agreed to resolve the dispute and address the investor’s demands by way of an out of court settlement.
Jiang (“John”) Ding v. Dragonchain, Inc., Case No.: 18-2-03584-8 (Wash. Sup. Ct. Feb 8, 2018).