EKO in the Wall Street Journal on Crypto Collapse
EKO represents investors who were deceived by cryptocurrency issuers and exchanges that misrepresented the nature of the assets they sold.
Since 2021, there have been several instances of "stablecoins," or digital assets advertised as pegged in value to fiat currencies or commodities, coming untethered and costing investors millions.
In May, EKO filed a complaint in the Northern District of California against a stablecoin issuer and Coinbase, the exchange where it was traded, for representing that the asset was pegged to the Japanese yen. In fact, the coin was prone to wild volatility. The case was covered recently by James Fanelli in the Wall Street Journal, who noted:
Facing a lightly regulated environment, some crypto investors have looked to courts to answer core legal questions for the industry, such as whether digital tokens are securities that should be subject to the same regulations as stocks.
EKO also represents investors in the Terra/LUNA "algorithmic stablecoin," which wiped out over $40 billion in market capitalization when it collapsed in mid-May.
If you are an investor in stablecoins or other digital assets that fail to perform as promised, and you want to know about your rights, contact us.