Initial Coin Offerings Set Stage for Litigation Wave

Initial coin offerings are attracting billions of dollars in financing, a growing pool of unsophisticated investors, and increased regulatory scrutiny.

That’s a recipe for a wave of private litigation, financial services and commercial litigation attorneys and policy researchers analysts told Bloomberg BNA.

The nascent technology is drawing legal scrutiny as it becomes an increasingly popular way to raise money. Instead of selling shares of stock, as in initial public offerings, more and more companies are selling digital coins or tokens in initial coin offerings that can represent ownership shares, currencies, or be redeemed for a good or service.

Private lawsuits ...