Verge token hack lawsuit says creators in project “black paper” are general partnership and that is Not a Good Thing

Quick Take

  • James et al. v. Valo et al., E.D. Texas (4:19-cv-801, 11/4/2019)
  • New lawsuit in Texas federal court alleges violations of Securities Act, Computer Fraud and Abuse Act and common law claims in connection with hack leading to loss of millions of dollars in verge tokens,
  • Plaintiffs say that Verge creators and people listed in project “black paper” are part of common law general partnership

Link to Complaint 

Of all the things I’d like to be a part of, a common law general partnership is nowhere on the list. These nifty default organizational structures are what you get when you go into business with a bunch of people, hoping to make a buck (or a token) and don’t bother to attend to corporate