- Tether and Block.one co-founder Brock Pierce wants to run for president.
- He is also a defendant in a securities fraud class action lawsuit related to his role in formulating EOS.
- He received court papers at a campaign meeting today.
Donald Trump and Joe Biden aren’t the only two candidates to run for president this year. Ahead in some state ballots, beyond Libertarian Jo Jorgensen and musician Kanye West, Tether is co-founder (and Mighty Duck) Brock Pierce.
By running for president, Pierce is open to not only criticism of his campaign platform, but also attacks on his role in creating a blockchain platform, EOS.
While shaking hands at a campaign rally that marked the opening of his New York City headquarters, Pierce received a warrant from a masked bystander.
James Koutoulas, CEO of Typhon Capital Management and part of the lead counsel for a lawsuit against Pierce, confirmed via email to Decoding that the service was related to a securities fraud class action.
According to Koutoulas, “Brock had refused to accept service from us through his counsel, so we had a process server to serve him at a rally for his presidential campaign. “
That officially informs him of a class action filed in federal court in May on behalf of anyone who purchased or received EOS tokens between June 2017 and the current date.
The class action “alleges violations of fiduciary duty and unjust enrichment by suspects, which include both current and former company executives.” In addition to Pierce, it named Block.one co-founders Brendan Blumer and Daniel Larimer, as well as a colleague, Ian Grigg.
The team alleges that Block.one, the mastermind behind the EOS blockchain, has not registered the EOS token sale, which raised approximately $ 4 billion worth of Ether, with the US Securities and Exchange Commission. In addition, the complaint alleges that the defendants kept investors in the dark about their activities and even the fact that they were under investigation by the SEC, which eventually settled a complaint with Block.one for $ 24 million.
Told Koutoulas Decoding those are group–which is led by Grant & Eisenhofer and also includes the Northwestern Law School Investor Protection Center and attorney Jenny Vatrenko–was appointed lead attorney on behalf of the Crypto Assets Opportunity Fund, which will be the lead prosecutor in the class action.
The next step?
“We will be filing an amended complaint shortly,” he said, before making a prediction. Then block.one will try to file a motion to deny. If the case survives that movement, the class certification process begins in earnest to determine who exactly lost money by blocking someone’s wrongdoing, and how much exactly. “
Regardless, the process will likely take longer than Pierce’s presidential campaign.