Cryptocurrency may have begun as a novel way to purchase goods and services online, but the world of cryptocurrency coins/tokens and digital assets has exploded well beyond just Bitcoin in recent times, attracting the interest of serious investors.
More importantly, most cryptocurrency coins/tokens are now being viewed, and regulated, as digital securities requiring compliance with applicable federal and state U.S. securities laws and international securities laws. Such coins/token offerings are typically referred to as Security Token Offering (STOs) (as opposed to what was previously referred to as initial coin offerings, or ICOs). These offerings are unique in nature and, although classified as securities for purposes of applicable securities laws, the regulatory landscape surrounding such offerings is uncharted and often requires unique legal structuring/compliance strategies.
Freeborn’s Emerging Industries Team is comprised of attorneys from various areas who have deep experience with securities law, fraud and litigation. We assist clients with a number of aspects of cryptocurrencies, including providing counsel with respect to the structuring/drafting/compliance of several STO offerings. We also can assist in navigating clients through the STO process, from the initial filing to the actual launch. In addition, our litigators serve as advocates for both plaintiffs and defendants in claims of fraud against entities involved in STO offerings.