WHITE PAPER SETS A LEGAL CONTRACTUAL COMMITMENT.
There is a common misconception that investors who have lost their funds while investing in scam ICOs should bear the consequences of their risky decisions. This is absolutely a false belief. There is no legal framework under which any entity can withhold another person’ money but:
- Security regulations
- Exchange of currencies
- Contractual terms
Almost all ICOs fail to fall into the first category as they clearly state the opposite and are not registered with a financial authority. Category two requires the establishment of a proper currency. This is a status which even Bitcoin struggles to achieve, and certainly cannot be claimed by a company selling tokens as credits for purchases of products or services.
Therefore, with exception of those cases where ICOs have clearly defined scams and illegal schemes, the distribution of tokens and new coins falls into the legal framework of a contract. In this framework, the whitepaper is the foundation of the agreement between parties.
Investors who suffered losses associated to ICOs which have not: delivered their promises as stated in whitepapers, fulfilled goals or spent funds as declared earlier, do have the right to claim a refund and if necessary, to pursue a legal lawsuit.
At ICO-Class-Action.org we pioneer this culture and help investors to gather together.