A lawsuit lately filed in a US district court in New York asserts that an investor was misled to invest an amount worth $2 million in terms of the altcoin MCash, as per the statement of a court filing dated Feb. 1.
The filing alleges that in order to purchase MCash tokens, the plaintiff Lijun Sun transferred $2 million to NY based investment group Blue Ocean Capital Group, Inc. It further stated that not only was the MCash Token not properly registered with the U.S. SEC but more prominently, the Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million, in connection with selling the MCash Token.
Materials that were provided to Sun purportedly did not precisely correspond to the token or the terms of their purchase. Only after buying the tokens did Sun realize that he would have to enter into a Token Purchase Agreement not with Blue Ocean Capital, but with another company, which defendants purportedly did not disclose. MCash Tokens were also claimed to be unregistered securities for which there was no legal market in the U.S.
As per the court documents, the plaintiff is entitled to recission of his investment in addition to compensatory damages worth $6 million. Sun further claims that a number of the defendants, on behalf of Blue Ocean Capital, committed common law fraud and federal securities fraud.
The filing states that Sun would not have invested the funds with Blue Ocean Capital, had he identified these facts. Also, the plaintiff maintains that at an in-person meeting with Antony Liu, the firm’s president, Liu accepted that he was conscious that the deal in which he got involved with the Plaintiff was not legal in the US and that he possibly will be uncovered to charges of deception.
It is to be noted that the firm was also given a Six-Star Diamond award by the convicted offender and Trump family associate Joey Cinque. Notably, this award is generally awarded to businesses in the hospitality industry like golf resorts, restaurants, and hotels.