On-chain liquidity protocol Bancor has been cleared in a case alleging that the company had breached U.S. Securities and Exchange Commission (SEC) rules to sell unregistered securities in the US.
The case against the company was dismissed completely on Monday, with US district judge Hellerstein citing the plaintiff's inability to produce sufficient evidence to back up their allegations against the company.
The case was first filled by Roche Cyrulnik Freedman and Selendy & Gay in April 2020, alleging that Bancor protocol developer, Bprotocol Foundation, had violated federal securities laws in the US, similar to the current Ripple case.
According to the plaintiff, Bancor had effectively sold unregistered securities in clear breach of SEC rules. However, Bancor operates outside of US jurisdiction, with offices in Israel, Zug, and Switzerland.
The plaintiff, Timothy Holsworth, said that he had successfully purchased 587 BNT tokens in 2019 using a digital exchange in Singapore. Judge Hellerstein, however, argued that SEC law does not apply to jurisdictions outside the US.
He added: “The federal securities laws do not reach a purchase and sale outside the United States. Wherever the current business location of Bancor, New York is not a reasonable and convenient place to conduct this litigation.”
Holsworth's lawsuit seems opportunistic, to say the least. At the same time, Ripple is facing legal woes of its own, hoping to resolve them under a more benevolent US president's administration. Ripple has lost both values as well as partners.