Williams v. Block.One (Block.One Class Action)

Class action suit against Block.one brought by investors, alleging violations of federal securities laws in connection with their multibillion-dollar digital assets offering.

Under Morrison v. National Australia Bank Ltd., 561 U.S. 247 (2010), the securities laws don’t reach crypto transactions wherein the first node to verify such transaction is not located in the U.S. More specifically, the initial proposed settlement was denied due to some members of the class not being subject to U.S. securities laws under the holding in Morrison. The judge held that irrevocable liability in a token sale occurs at the location where the first node to verify the transaction is located.

1:20-cv-02809