Crypto Owners Can Pursue Case Against Compound DAO, Insiders

Owners of COMP digital assets can move ahead with their lawsuit claiming those who control the decentralized organization now associated with the crypto currency are effectively unregistered securities “sellers” because of their soliciting role.

Even though the majority owners of the organization called Compound DAO, identified as partners in Judge William H. Orrick‘s opinion, didn’t directly sell the securities, they may be swept up as “sellers” under Section 12 of the Securities Act of 1933 for soliciting the sale of securities, he said in a ruling issued Wednesday.

Orrick declined to dismiss the suit, which names two individual defendants ...