First judicial finding that digital tokens are securities
Categories: Corporate and M&A, Hi-Tech
A magistrate judge in Florida issued a report in a class action lawsuit – Rensel v. Centra Tech, Inc. – finding that tokens issued and sold by tech startup Centra Tech were investment contracts. While the report and its recommendations are not final until approved by a district court judge, it appears to be the first judicial finding that a company’s issuance and sale of tokens through an initial coin offering (ICO) must comply with federal securities laws.
