Term sheets: Locations Matter

Quick Take

  • Nirvana Capital and Winslow Strong v. Mobile Gaming Tech
  • A location provision in the terms may make investors unqualified to receive token distribution

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 will be split into three posts this week.

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.

[related id=1]Nirvana Capital Ltd. and Winslow Strong v. Mobile Gaming Tech. Inc. et al.(ND. Cal. Filed 12/12/2018) [NMR]

We live in a world of contracts. You sign contracts all the time to use a variety of services. Login to Facebook? You signed a contract at some point. Signed up for a chance to win a free cruise? Contract.

Often times, most of the time really, people don’t read the terms and conditions that are associated with these contracts. The phenomenon is so prevalent that agreements on the Internet are often called “clickwrap agreements.” A person only has so much time in any given day, and spending it reading onerous agreements is generally not very high-priority. That said, it is a fair assumption that the companies offering up these long agreements have some passing familiarity with the terms and conditions they expect people to agree to. Right? Well … maybe not.

Mobile Gaming is a company that ran an ICO to fund the development of their gaming platform, and their corresponding ecosystem where participants could buy goods and services with the tokens, CashBet Coins, sold during the ICO allegedly from January 2018 to April 2018. In fact, Mobile Gaming allegedly at one point claimed to have 4.25 million active players on their gaming platform. This new gaming platform and the CashBet Coins were apparently an attractive investment opportunity for N