A case recently filed in a U.S.  district court in New York claims that an investor was misled into investing $2 million dollars within the cryptocurrency MCash, a February. 1 court filing states.

The filing alleges that the plaintiff Lijun Sun transferred $2 million to New-York primarily based investment group Blue Ocean Capital group, Inc. to buy MCash tokens, stating:

“Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission (SEC), but more significantly, in reference to selling the MCash Token, Defendants made various misrepresentations and omissions that induced plaintiff to invest $2 million.”

Materials that were provided to Sun allegedly failed to accurately represent the token or the terms of their purchase. only when buying the tokens did Sun realize that he would need to enter into a Token purchase agreement not with Blue Ocean Capital, however with another company, that defendants supposedly didn't disclose. MCash Tokens were also claimed to be unregistered securities that there was no legal market within the U.S.

According to the court documents, the plaintiff is entitled to recession of his investment additionally to compensatory damages worth $6 million. Sun conjointly alleges that some of the defendants, on behalf of Blue Ocean Capital, committed federal securities fraud and common law fraud.

Sun wouldn't have invested with the funds with Blue Ocean Capital, had he known these facts, the filing states. The plaintiff additionally maintains that at an in-person meeting with Antony Liu, the firm’s president, Liu “acknowledged that he was aware that the transaction within which he engaged with [the] plaintiff wasn't legal in the us which he may be exposed to charges of fraud.“

Data on Etherescan shows that MCash, an ERC-20 token, is held at 2 addresses and is worth $0.00 at 0 Ethereum (ETH). Blue Ocean Capital’s website is down, however a video celebrating its grand opening in new york continues to be on YouTube. The video touts recognitions and awards from NASDAQ senior vice-president Robert McCooney and Felix Ortiz, the Assistant Speaker of the ny State Assembly.

The firm was also conferred a Six-Star Diamond award by convicted felon and Trump family associate Joey ‘No Socks’ cinque. The award is typically award to businesses in the hospitality industry like restaurants, golf resorts and hotels.

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