Caselaw Minute: Investing in Sunstock 'trenches'

Quick Take

  • Actus Fund and EMA Financial v. Sunstock
  • A new lawsuit filed in Massachusetts federal court alleges a long series of misrepresentations made by a company that the plaintiffs invested several hundred thousand dollars into, culminating in claims about an ICO that the plaintiffs say they never agreed to allow their investment to be used for

The Block is delighted to bring you expert cryptocurrency legal analysis courtesy of Stephen Palley (@stephendpalley) and Nelson M. Rosario (@nelsonmrosario). They summarize three cryptocurrency-related cases on a weekly basis and have given The Block permission to republish their commentary and analysis in full. Their analysis, Crypto Caselaw Minute, is below.


This week’s CCM looks at a company that may have violated its own terms and conditions, gives an update on Ripple jurisdiction jockeying, and talks typos, trenches and ICOs. (As always, Rosario summaries are “NMR” and Palley summaries are “SDP”.)

Disclaimer: These summaries are provided for educational purposes only by Nelson Rosario [twitter: @nelsonmrosario] and Stephen Palley [twitter: @stephendpalley]. They are not legal advice. These are our opinions only, aren’t authorized by any past, present or future client or employer. Also we might change our minds. We contain multitudes. (Picture credit: pixabay; CC0 Creative Commons)

[related id=1]Actus Fund, LLC and EMA Financial, LLC v. Sunstock, Inc., (D. Mass, 1:18-cv-12568, Doc. 1, 12/13/18) [SDP]

Are spelling errors and improbable claims in marketing materials a sign that an investment idea might be more fluff than stuff? Put differently, if something sounds too good to be true does that mean that it probably is?

This new lawsuit filed in Massachusetts federal court alleges a long series of misrepresentations made by a company that the plaintiffs invested several hundred thousand dollars into, culminating in claims about an ICO that the plaintiffs say they never agreed to allow their investment to be used for.