Launched in the summer of 2017, the ICO Giga Watt startup is accused of conducting an unregistered offer of securities. A related claim is filed by a group of project investors, writes CoinDesk.
In total, the plaintiffs have invested more than $ 20 million in the project, which, according to the current rate of bitcoin, exceeds $ 100 million. Giga Watt collected funds for the launch of mining and the creation of a cryptocurrency warehouse. In exchange for invested funds, investors should have received either Giga Watt tokens or mining equipment. Tokens would provide investors with exclusive rights to use the premises of a company without a lease for 50 years.
However, now plaintiffs claim that the terms of construction have not been met, and promises to reimburse contributions – not fulfilled
“Many investors did not get Giga Watt Tokens, and the claimed equipment was not installed. Contributors are afraid that they will never receive coins, and mining will not be launched as Giga Watt delays the development of the project indefinitely,” the claim says.
Before the launch of the Giga Watt Washington Gate, ICO cooperated with Perkins Coie, a law firm that was to ensure that Tokens would not be treated as securities. Plaintiffs, however, argue that tokens issued for a pre-existing network are by their very nature securities and fall under the rules of regulation of the US Securities and Exchange Commission (SEC).
Recall, Dave Carlson earlier discovered in Washington state a secret farm for the mining of the Bitcoins, which he called the largest in North America.