In the recent reports, the Tron Foundation has requested the federal judge from New York to dismiss a lawsuit filed against it. As per sources, the lawsuit was filed against the Tron Foundation for breaching the securities regulations. The lawsuit has been filed alleging the firm for not adhering to securities requirements for its initial coin offering program from 2017.
In the lawsuit, the alleging party has claimed that the ICO program offered and run by the Tron Foundation was flawed.
It has been confirmed that the motion for the dismissal of the lawsuit was filed by the Tron Foundation on December 15, 2020. For those who are still new to the crypto-world, Tron Foundation is prominently known as a blockchain developer that operates from China.
In the dismissal request, the legal teams from the Tron Foundation have stated that the case filed has nothing to do with New York. This is why New York should have no connection or involvement in this matter.
The foundation also clarified that this dismissal does not mean that it is trying to avoid or evade this situation. The firm held the opinion that it simply does not consider that the lawsuit filed against them is completely bogus. The Tron Foundation officials also revealed that the party that has filed the lawsuit was not even a part of the ICO of Tron.
The Tron Foundation officials also pointed out that it took the lead plaintiffs two years before they filed the lawsuit against Tron Foundation. The firm also confirmed that it has been more than two years since the offering has been concluded by the Tron Foundation.
The dismissal request also pointed out that nowhere in the complaint, it is mentioned that the investors who participated in the ICOs belonged to the United States.
It was also mentioned in the motion where the three plaintiffs purchased their TRX tokens from. It was confirmed that the TRX purchased by the plaintiffs was through Binance, which in this case is a secondary exchange.
Based on the above, the Tron Foundation requested the NY Judge to dismiss the case as the securities regulations do not apply to purchases made through secondary exchanges/sources.
The dismissal request also stated that the plaintiffs purchasing the TRX through a secondary exchange has no connection to the Tron Foundation’s ICO. The foundation claimed that the plaintiffs even made the TRX purchases years after the ICO.
However, it does not seem that the Tron Foundation will be able to get off the hook just that easily. The defendants in this case have also dismissed all the claims made against them by the Tron Foundation. The defendants claimed that the whitepaper presented by the Tron Foundation for its ICO was misleading.
The defendants stated that in the whitepaper, the Tron Foundation claimed that the TRX tokens were not to be characterized as comprising.