antitrust

Request Dismissal of Cryptocurrency based Antitrust and Misrepresentation Suit by United American Corp

April 21, 2019 Off Maheen Hernandez By Maheen Hernandez

The anti-trust complaint filed by United American Corp versus Kraken, Bitmain and several other well-known personalities in the cryptocurrency world has been alleged for “scheme by a tight-knit group of individuals and organizations in order to manipulate the cryptocurrency market concerning Bitcoin Cash.”

United American Corp, the Plaintiff alleged that “Defendants effectively hijacked Bitcoin Cash network, centralized the market, and violated all of the accepted standards, protocols and course of conduct associated with Bitcoin since its inception.”

The defendants have lawyered the suit against them, and they have requested dismissal of the suit.  The Plaintiffs have responded to the submissions of the defendants, and the court has ultimately ruled about the charges framed by both the sides.

The court opined that the way the sides have framed their charges will have implications for disputes that are currently behind the screens and which are yet to surface.

The plaintiffs allege a global capitalization meltdown of more than $4 billion, thereby causing several US Bitcoin holders, which included the plaintiffs themselves to suffer irreparable harm and damages.

Bitmain has argued that the allegation of “antitrust claim” fails as the lawsuit does not infer or prove any kind of agreement between the plaintiff and defendants.

Bitmain as well placed their argument contending that the complaint did not please restraint or trade or harm to competition, which they state is important when alleging antitrust claim.  None of the alleged injuries according to the defendants have harmed the plaintiffs.

The defendants in the case stated that none of the allegations have a conclusory assertion concerning the execution of the “Bitcoin Cash ABC upgrade” leading to decline in the price of Bitcoin Cash, other than for macroeconomic forces.

The Kraken and Jesse Powell have as well initiated a motion to dismiss the suit, where they contended that the market collapse was due to macroeconomic forces and not due to any kind of conspiracy.

The plaintiff; however, alleged facts which they state show that “Defendants have made explicit statements declaring that they coordinated, conspired and agreed with each other.”

The “misrepresentation” according to the plaintiffs was that “Defendants misrepresented to Plaintiff and the market that they would abide by the [Satoshi] Whitepaper and accepted standards and protocols.”

The plaintiffs claim that they relied on the misrepresentation and bought millions of dollars of equipment to mine “Bitcoin Cash.”

It might be concluded that the damage claims are doubtful; however, at the current stage, the dismissal motions to claim are difficult at this point in time.

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