The investors who settled claims against the self-proclaimed platform claiming itself as the “fastest blockchain within the world,” ATBCoin LLC, have requested that a New York federal judge intervene to enforce the $250k agreement.
Earlier in April, the lead plaintiff during a class-action lawsuit levied at ATBCoin over its 2017 ICO that raised over $20 Mln and agreed to a proposed settlement of $250k.
The suit asserted that ATBCoin had distributed unlicensed securities and did not register with the U.S. SEC [Securities and Exchange Commission].
However, in May, ATBCoin’s representation claimed that the firm could not afford the deal at the present times “due to a change in circumstances,” with the lawyers requesting to withdraw from the case as their legal fees could’nt be met.
ATBCoin Has Nothing To Offer
Recently on Tuesday, the plaintiffs urged the court to enforce the $250k agreement inked in April, asserting that the letter filed by ATBCoin’s attorneys didn’t explain the firm’s “sudden inability to pay.”
“Without further detail on defendants’ purported inability to fund the settlement, the lead plaintiff is utterly unable to work out if and when defendants became insolvent, or either the defendants fraudulently entered into the stipulation within the first place,” the filing added.
The plaintiffs also added that “the defendants specifically represented within the stipulation that they would be surely able to fund the settlement and wouldn’t be insolvent at the time of paying the settlement amount.”
ATBCoin Facing Losses Exceeding 80%
Lead plaintiff Raymond Baletrta filed the lawsuit earlier in September 2017, accusing the firm of failing to satisfy the expectation of its marketing rhetoric – which claimed that ATBCoin’s blockchain would serve as “the fastest cryptographic network within the Milky Way galaxy.”
However, while the tokens were issued for $1 USD in June 2017, then $2.50 USD in September 2017, by 2018, the underwhelming launch of the ATBCoin platform left investors facing losses exceeding to more than 80%.