According to a lawsuit filed in United States an investor has been misled into investing $2 million dollars in cryptocurrency MCash. The litigant Lijun Sun, had made a transfer of $2 million to New-based investment group Blue Ocean Capital Group, Inc. to purchase MCash tokens. The filing states,
“Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission (SEC), but more importantly, in connection with selling the MCash Token, Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million.”
No legal Markets for MCash in U.S.A
Tokens provided to Sun did not represent the original tokens in terms of their purchase. After buying the tokens Sun came to realise that he required to enter a Token Purchase agreement with another company and not Blue Ocean Capital. However, the details of the other company were not disclosed by the firm. Further, MCash Tokens were claimed to be unregistered securities with no legal market in U.S.A.
As per documents, Sun will get back his invested amount along with compensatory damages of $6 million.. He also alleges that Blue Ocean Capital has committed federal securities fraud.
Further, Sun said he would not have invested the funds with Blue Ocean Capital, had he known these facts, the filing states. Antony Liu, the firm’s president, Liu “acknowledged that he was aware that the transaction in which he engaged with Sun was not legal in the United States and that he could be exposed to charges of fraud.“
Interestingly, Blue Ocean Capital’s website is down. However, a video celebrating its grand opening in New York is still on YouTube.