MGT Capital allied with John McAfee, Faces legal charges over manipulation claims
MGT Capital Ventures, a BTC mining and digital money investing company also connected with John McAfee, has been served with legal papers due to claims that its previous Chief Executive was involved in a pumping and dumping plot that controlled the cost of MGT shares.
BTC Mining Company Battles a Class Action Law case
The proceedings, which were documented by Rosen Advocates for the benefit of present and previous MGT investors who acquired MGT shares between October 2015 and September 2018, pursues a Securities and Trade Commission (S.E.C) examination concerning a shares pumping plan that included previous MGT Capital Chief Executive Robert Ladd, who resigned when he was mentioned in the case.
The pumping-and-dumping activity, as detailed by a news outlet, comprised of a team of ten financial specialists and company administrators as well as Ladd, previous Riot Blockchain President John O'Rourke (who likewise stepped aside), and wealthy Phillip Frost, who supposedly falsely over a time created over $26 million in illegal equity deals by controlling the costs of penny shares.
In spite of the fact that not plainly mentioned in the S.E.C request, it is obvious from the organization's protest that the pumping-and-dumping team utilized untrustworthy advancement and manipulated stocks pushing the cost of MGT stocks higher, allowing them to take-home over $9.5 million in only a fortnight.
John McAfee Mentioned as Litigant
A portion of that supposed exploitative advancement was connected with MGT's securing of an organization claimed by an anonymous "Cyber-security Trendsetter," in all likelihood John McAfee. After coming to MGT, McAfee worked at different capacities such as official director and Chief up to when he resigned in Aug last year. Whilst the cyber-security pacesetter wasn't mentioned as a litigant in the S.E.C's objection, he is recorded as a respondent in the legal claim.
Referring to bountifully from the S.E.C request, the Rosen office's protestation asserts that MGT and alternate litigants dishonored the Securities Trade By-law on 4 four accounts, all including different segments of the pumping-and-dumping conspire.
The lawsuit asks that the court to make MGT to compensate harms done to investors influenced by the exploitation of MGT shares, take care of the offended party's court expenses, and reward oppressed investors.
When contacted for remarks, a MGT representative revealed to our news outlet that the company has the "most extreme certainty" that the lawsuit holds no water.
"MGT has the most extreme certainty that the lawsuit documented against them has no legitimacy," the representative said. "This isn't a takeoff from ordinary issues in stock exchanges when share costs are dropping. Past instances which are comparable to this were dismissed with no bias."