Situation co-founder: Dropping $100M lawsuit was 'pointless'

After a year in court, several New York law firms have dropped their cases against privacy-focused crypto network Status. The lawsuit alleged that Status's co-founders were nowhere to be found three years after raising $100 million in an illegal ICO. Speaking to Decrypt for the first time since we spoke with Decrypt about the lawsuit last August, Status co-founder Carl Bennetts said the lawsuit was "pointless" and damaged the company's reputation so much that banks refused to work with Government. . "Banks are incredibly conservative, so if they scrutinize the establishment, they see some of the media, and that has caused some hesitation," he said. The law firms did not explain why they dropped the case and did not respond to Decrypt's requests for comment. The men behind the $100 million 'illegal' ICO disappear 'in the fog' In a lawsuit filed in April 2020, it was alleged that Bennetts and co-founder Jarrad Hope misled investors into investing in the $100 million 2017 ICOs. It is subject to US securities laws. Status's coin powers the crypto network, which includes an encrypted messaging app, crypto wallet, and Web3 browser. Last August, Lawyers for Status told the court that plaintiff Joel Deutsch had purchased $35 worth of STN in 2020 and could sell it for a profit of $69. Therefore, the lawyers argued, "Plaintiff did not suffer any damage in the literal sense of the word." In addition, Bennetts claimed that Deutsch purchased the Status tokens on a Chinese crypto exchange operating on the Polynesian island of Samoa – not from the Status Network, which does not sell directly to US investors. Deutsch never responded to these allegations in court, and Decrypt was unable to reach its lawyers for comment. In similar cases, judges concluded that crypto firms failed to prevent US investors from accessing tokens sold in ICOs. Another issue mentioned in a letter sent to the court in August 2020 is D.

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