The law firm Roche Freedman wants to recover the money of the investors

The law firm Roche Freedman has filed a series of lawsuits against some major crypto companies, including TRON.

The allegations against Tron Foundation, the company behind the Tron cryptocurrency platform, are that the sale of TRX tokens was made in violation of US securities laws.

The lawsuit claims that, from June 2017 until now, the defendants (founder Justin Sun, CTO Zhiquiang Chen and the Tron Foundation) “have promoted, offered and sold Tron securities, known as TRX tokens.”

Tron sold TRX in an initial coin offering, and the Foundation retained 35% of the tokens, according to the lawsuit. The applicants claim that these securities were not registered with the SEC and that TRON did not qualify for an exemption from the registration requirements.

“The creation of TRX tokens thus occurred through a centralized process, in contrast to Bitcoin and Ethereum. However, this would not have been obvious to an issuing investor. Rather, only after the passage of time and the disclosure of additional information about the issuer’s intention, management process and success that allowed decentralization to occur, a reasonable buyer might know that he has purchased securities / securities. Thus, buyers were tricked into believing that TRX is anything but a security, when in fact it was ”

is mentioned in the complaint.

The law firm Roche Freedman wants to recover the money of the investors

Furthermore, the TRX whitepaper expressly stated that “TRX does not qualify as securities.” As such, the investors were misled because they reasonably understood that the issuance was not subject to US securities laws.

The documents also claim that Justin Sun, the founder of the company, promoted Tron’s offers claiming they are similar or “better than” Ethereum. He used this comparison in several messages posted on Twitter. Since Ethereum is not a security, Sun used this association to convince investors that TRX has the same status.

Claimants represented by the law firm Roche Freedman are Chase Williams, Alexander Clifford and Eric Lee. They asked to recover what they paid for the TRX tokens with interest or the equivalent in monetary damages plus interest from the date of purchase.