Another fraud has surfaced in the crypto investment industry as an investor filed a lawsuit against New-York based investment firm Blue Ocean Capital Group for misleading him into a $2 million dollar investment.
According to the February 1 court filings, the plaintiff Lijun Sun, a Chinese citizen and a California resident, had transferred $2 million to Blue Ocean Capital Group to invest the money in MCash.
However, MCash is one of the dubious tokens in the market and is not properly registered with the United States’ Securities and Exchange Commission as it falls under the securities category.
“Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission (SEC), but more importantly, in connection with selling the MCash Token, Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million,” the court filing stated.
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MCash is an Ethereum-based ERC-20 token with no exchange listing and is valued at $0.00. Moreover, there is no clarity on the development of the project either.
Blue Ocean did not disclose the risks associated with the investment and even withheld information in terms of the purchase. Only after buying the tokens, Sun realized that he would have to enter into a Token Purchase Agreement not with Blue Ocean Capital, but with another company, which defendants purportedly did not disclose.
The filings show that Sun is seeking recission of his investments along with compensatory damages worth $6 million from the investment firm.
A Classic Fraudulent Firm?
Blue Ocean Capital, itself is a controversial entity. The firm does not have much public presence, with only a promotional video of its launch event from mid-2018. The video promotes it as the recipient of awards from Nasdaq senior vice-president Robert McCooney and Felix Ortiz, the Assistant Speaker of the New York State Assembly.