Blockchain Task Platform’s Coin Offering Passes Securities Test

Latium Network Inc. can’t duck a would-be class action over its initial coin offering because the company’s tokens seem to pass the legal test for securities, a New Jersey federal judge said Dec. 10.

The blockchain-based task platform faces an investor suit alleging its ICO was an unregistered offer and sale of securities.

The first wave of putative class actions alleging unregistered ICOs violate federal securities laws began in late 2017. Since then, judges have been grappling with how to apply the 72-year-old test for securities to cryptocurrencies.

Here, Latium said its LATX tokens weren’t securities because they weren’t part ...