The ICO, which completed in August of this year is understood to have attracted in excess of six thousand investors worldwide, raking in around $20 million USD in the process.
Since its initial listing on the exchanges in early October, the price of ATB has been progressively declining. Having initially hit the exchanges at around $1.30, it has since fallen to just under $0.50 at time of writing.
It is not known at this stage if the statement released by Faruqi & Faruqi comes on the back of a formal complaint made by existing investors. There appears to be no formal accusation of wrong-doing at this stage.
SEC’s December Statement
Speculation has been mounting in some quarters that this may be an initiative undertaken by a law firm in active pursuit of potential clients who have invested in an ICO which itself may be in breach of SEC securities regulation.
The SEC itself issued a statement just over two weeks ago, clarifying its own position on ICOs, pointing out in particular that ICOs can likely expect to find their token issues qualifying as securities.
Consequently, token sales which fall under the SEC’s jurisdiction and which have not formally registered as securities investments may be exposed to future legal action.
The ATBCoin project describes itself as a “fully-built, full-scale investment platform […] using the world’s most secure and reliable payment system.”