3 Individuals Accuse Compound of Selling Unregistered Securities
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The decentralized organization behind the Compound landing platform, its co-founder Robert Leshner, and venture capital investors who backed the project have been accused of reportedly selling unregistered securities.
According to a filing with the US District Court for the Northern District of California, 3 individuals have reported damages from holding COMP utility tokens.
The affected users have asked the court to consider the claim as collective.
The Compound DAO and its partners oversaw implementations of COMP in violation of the Securities Act. They allegedly made false and misleading statements about the prospect of profiting from holding tokens. Since then, the price of the asset has decreased significantly.
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