The 1st Judicial Finding That Digital Tokens Are Securities

Law360 (July 11, 2018, 2:03 PM EDT) -- On June 25, 2018, a magistrate judge in Florida issued a report in a class action — Rensel v. Centra Tech Inc. — finding that tokens issued and sold by technology 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, or ICO, must comply with federal securities laws.

Background and Procedural History

On Dec. 13, 2017, plaintiff Jacob Rensel filed a class action against Miami-based Centra Tech...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!