According to the Complaint, Elastos purportedly seeks to “create a new kind of Internet, powered by blockchain technology” where users will be able to “own digital assets” such as digital books, movies, music, and games, and “generate wealth from them.” Users will be able to own, buy, and sell digital property without middlemen like Amazon or Apple, in the same manner that property is sold outside of the internet. Elastos claims that it will leverage blockchain technology to ensure digital assets are not compromised and to ensure transactions are safe and secure.
The Complaint alleges that in connection with the Elastos Initial Coin Offering, Defendants raised between $94 million and more than $200 million in digital cryptocurrencies by offering and selling unregistered securities in the form of ELA tokens (“ELA Tokens”), in direct violation of the Securities Act.
On July 10, 2019, Plaintiffs filed a Motion to Remand the case to State Court. On February 6, 2020, the Court issued an Order denying Plaintiffs' Motion to Remand. On May 26, the Court issued an Order appointing Lead Plaintiffs and Counsel. On June 24, two of the individual Defendants were voluntarily dismissed from the case.