The New York-based investment group- ‘Blue Ocean Capital Group. Inc.’ has been alleged for misleading one of its investors- ‘Lijun Sun’ into investing a hefty amount of 2 million dollars in the cryptocurrency- MCash Tokens, and for the cryptocurrency not being ‘properly registered with the U.S. SEC. The investment group has been facing a lawsuit against it in the district court in New York on 1st of this month. As per the case filing-
“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 Toen, Defendants made numerous misrepresentations and omissions that included Plaintiff to invest 2 Million Dollars.”
The case reveals that the plaintiff was not provided with clear and transparent terms and conditions of the purchase. The purchase became a problem when Sun got to know that there is a condition of entering into a ‘Token Purchase Agreement’ after he bought the tokens. Moreover, this agreement was not even with the Blue Ocean Capital, rather it was with some other company, the name of which has not been revealed to the public by the defendants. Another layer of the case is that the MCash tokens were not registered properly to be recognized in the U.S. legal market.
As a result of the case filings, the court has entitled the plaintiff- Sun a revocation of the money invested (i.e. 2 Million Dollars). In addition to this, as compensation to the damage caused, Blue Ocean Capital Group. Inc. will have to pay 6 million dollars. Sun has also alleged some of the defendants from Blue Ocean Capital Group. Inc side is involved in federal securities fraud as well as common law fraud.
As per the reports obtained from Cointelegraph, Sun revealed that during a face to face meeting with the President of the Blue Ocean Capital Group- Antony Liu he “acknowledged that he was aware that the transaction in which he engaged with the Plaintiff was not legal in the United States and that he could be exposed to charges of fraud.” The filing states that with any kind of awareness of such facts, the Plaintiff would not have invested into MCash Tokens in the first place.
On the other hand, there is quite a bright image of the Blue Ocean Capital Group across social platforms. For instance, there is a video on the famous social platform- YouTube about the celebrations for the grand opening of the Blue Ocean Group in New York. In the video, it is shown that the group is getting recognition and awards Nasdaq’s senior vice-president Robert McCooney and Felix Ortiz, the Assistant Speaker of the New York State Assembly. Additionally, as per Cointelegraph, the Blue Ocean Capital Group received a Six Star Diamond award by ‘convicted felon and Trump family associate Joey ‘No Socks’ Cinque.’ A Six Star Diamond award usually is given to companies related to the hospitality industry.
If we look at the company’s official website, it is down. Moreover, as per the information on the Etheresscan, MCash (ERC- 20) token is running at the rate of 0.00 U.S. Dollars at two addresses at 0 Ethereum ETH.