The SEC alleging that an asset is a security does not make it so



By Nick Morgan and Ken Herzinger (Nov. 24, 2021, 2:24 p.m. EST) – When a jury convened earlier this month in U.S. District Court for the District of Connecticut after a trial in Audet v. Fraser involving allegations of fraud by investors who bought what are known as hashlets, the very first question jurors had to answer seemed to be straightforward: Were hashlets investment contracts, which would turn them into securities. ?[1]

The reason this question should have been a slam dunk for the plaintiffs is that the United States Securities and Exchange Commission had already filed a complaint in 2015, SEC v. Garza, in which the SEC specifically alleged that the hashlets were securities.

Based on this, …

Stay one step ahead

In the legal profession, information is the key to success. You need to know what’s going on with customers, competitors, practice areas, and industries. Law360 provides the intelligence you need to stay an expert and beat the competition.

  • Access to case data in articles (numbers, filings, courts, nature of prosecution, etc.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, requests, etc.
  • Create personalized alerts for specific case articles and topics and more!

TRY LAW360 FREE FOR SEVEN DAYS


Previous Discourage adoption? Balancing Security and Innovation in Cryptography
Next Liverpool won't sell Divock Origi to Newcastle United in January