Can mining equipment preorders qualify as securities?

Quick Take

  • Roberts et al. v. Obelisk, Inc.
  • Defendants sold preorders to the plaintiffs for specialized mining hardware
  • Plaintiffs allege that the pre-sale contracts were securities as defined by the Howey Test

Government shutdown or not, plaintiffs' lawyers haven’t stopped filing new crypto lawsuits. This week we look at three new complaints, one involving lost crypto and a demand for a fork (the software kind), another that says that pre-sold mining hardware contracts were actually securities, and last but not least artificial intelligence on the blockchain (but not so much, it turns out). [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]Roberts et al. v. Obelisk, Inc., 3:18-cv-02898 (D.S.D.Cal, December 28, 2019) [SDP]

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