It has been confirmed in the last few hours that ATB Coin has now become the target of a formal investigation by the SEC.
The revelations come on the back of initial speculation which had emerged in light of an appeal by a firm of New York-based lawyers who had asked for investors in the ATB Coin ICO to contact them directly.
$600 Investor Files Complaint
The ATB Coin complaint, which can be sourced here, reveals that the plaintiff, a Raymond Balestra, who had invested $2.1 ETH into the venture [c. $600 at the time of investment] is pursuing CEO’s Herbert Hoover and Edward Ng for false representation.
Among the complaints being filed are that, far from being “the fastest blockchain-based cryptographic network in the Milky Way galaxy,” as the project team had allegedly claimed during the ICO sale period, “adoption of ATB Coin and the ATB Blockchain has been essentially nonexistent, and the value of ATB Coins has continuously fallen.”
Other charges being levied by the plaintiff relate to the ICO sale’s varying conditions: “the offer in August 2017 appears to have been 1 ATB Coin for $1.5, payable in BTC, ETH, or LTC.7 Further, in September 2017, the offer was 1 ATB Coin for $2.5, also payable in BTC, ETH, or LTC.”
The plaintiff also makes note that the blockchain startup has never fully disclosed the exact amount raised during its token sale.
ATB Coin representatives did not respond to a request for comment by ICOExaminer when contacted on its Telegram channel.
The class action lawsuit comes two days after yet another ICO securities-related lawsuit was filed by investors against Monkey Capital, a crypto hedge fund token sale which had been scheduled to take place in July, pushed back to August and eventually never materialising with its website subsequently “disappearing”.