The crypto industry has been hyped about the American elections this year as Brock Pierce, a Crypto venture capitalist, and Tether creator is running for president as an independent candidate. Pierce has seen Grammy-nominated artist Akon, who is also a crypto enthusiast, join his team.
While the crypto industry was hyped about this, the Tether founder has now been served for alleged involvement in a securities fraud.
In a surprising turn of events, Pierce was served a court summons by a masked bystander in a campaign rally that marked the inauguration of his New York headquarters.
James Koutoulas, CEO of Typhon Capital Management and part of the lead counsel for a lawsuit against Pierce, stated that Pierce was served legal documents in connection with a class-action lawsuit against Block.One, a blockchain company co-founded by Pierce and the one behind the EOS ICO.
According to the lawsuit, Pierce and other Block.one co-founders Brendan Blumer and Daniel Larimer, as well as a colleague, Ian Grigg, have been charged with “breach of fiduciary duty and unjust enrichment by defendants, who comprise both current and former company executives.”
Block.one allegedly did not register the EOS token sale that raised a whopping $4 billion in Ethereum with the US Securities and Exchange Commission (SEC).
The suit also adds that the defendants did not inform investors that the company was being investigated by the SEC, while also keeping them in the dark about its operations.
Koutoulas stated that Pierce had previously “refused to accept service” and hence they had a “process server serve him at a rally for his presidential campaign.”
Koutoulas’s group is led by Grant & Eisenhofer along with the Northwestern Law School Investor Protection Center and litigator Jenny Vatrenko, who will be leading the counsel on behalf of the Crypto Assets Opportunity Fund, the lead counsel in the case.
“We will be filing an amended complaint soon,” Koutoulas added. “Then block.one will try to file a motion to dismiss. If the case survives that motion, then the class certification process begins in earnest to establish who exactly lost money due to block.one’s misconduct, and exactly how much.”