March 31, 2020, 11:25AM EDT
• 7 min read

ICO securities class-action against Unikrn is kept out of arbitration, but is that bad for them?

Quick Take

  • Hastings v. Unikrn, Inc. 2020 Wash.App. LEXIS 808, is a new Washington State court of appeals decision involving a putative securities class action arising out of 2017 token sale.
  • Defendants moved to compel arbitration based on an arbitration clause in the sale’s terms of service.
  • The Court said that there wasn’t sufficient evidence to find that the buyer had agreed to the terms, so it affirmed a trial court ruling keeping the case out of arbitration and in court.
  • The case illuminates the challenge of creating a work flow that can be used to enforce online terms of service.
  • It also raises questions about the pros and cons of arbitration, which are discussed following a summary of the court’s opinion.

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Already a Research Member? Login Here