Compound Should Reverse Crypto Token Sales, Investor Suit Says

Compound DAO and its majority owners should undo sales of its crypto tokens and give investors back the money they paid, three token holders say in a proposed class suit.

COMP tokens are securities but aren’t registered with the US Securities and Exchange Commission for sale, the token holders say. That means the sales violated securities laws against unregistered offerings, which entitles them, and proposed class members, to a reversal of the sales or equivalent money damages, they say.

COMP tokens experienced a “speculative frenzy” but then plummeted in value, they say. They filed their complaint Thursday in the US ...