As a seasoned analyst with years of experience navigating the complex and ever-evolving landscape of digital assets, I find myself closely following this intriguing legal battle between Chainalysis and Exceptional Media Ltd., the company behind YieldNodes.
Representatives of the blockchain analysis company, Chainalysis, have been arranged to attend a court hearing at the New York Supreme Court on October 16th, which is in connection with a libel lawsuit filed against them in January 2024.
Based on documents shared on legal analysis platform Trellis, the judge handling the case is expected to consider a recent motion to dismiss, which has been submitted by the legal team at Chainalysis.
YieldNode
In a lawsuit, Exceptional Media Ltd., creators of the YieldNodes blockchain investment initiative, claim that Chainalysis mistakenly categorized their project as an “investment scam.” This assertion is based on documents submitted to the court by Exceptional Media.
Exceptional Media is demanding compensation totaling at least $650 million, claiming that their reputation and clientele have been negatively affected. Moreover, they assert that the actions were deliberate and harmful.
Per the Jan. 22, 2024, court filing:
“In or around the third week of January 2023, Plaintiff received a phone call from someone at Chainalysis, informing Plaintiff that Chainalysis had categorized Yieldnodes as a scam. The Chainalysis representative informed Plaintiff that Yieldnodes’ categorization could be lifted, or changed to “high-risk”, but such a possibility should be viewed as an ‘opportunity’ that may take a couple of months.”
Chainalysis’ response
Since the original lawsuit was initiated, Chainalysis’ legal team has repeatedly requested that the case be thrown out. As far as Chainalysis is concerned, Exceptional Media and YieldNodes have not been able to prove that the YieldNodes project is not a fraud or offer any counterarguments against Chainalysis’ accusations.
Per a court document filed by Chainalysis’ legal team, “the complaint fails to allege falsity.”
The document continues by asserting that Chainalysis’ report labeled YieldNodes as a fraudulent investment opportunity. This type of scheme usually offers inflated return promises to users, often backed by a supposedly foolproof, unbeatable trading strategy. Moreover, the lack of clarification in the complaint about where Chainalysis’ findings may be flawed could indicate that Yieldnodes might indeed be an investment scam.
Chainalysis argues that the case should be dismissed because the complaint does not provide a reason as to why it is not an investment scheme, or even a fraudulent one, which they claim is crucial for the plaintiff’s argument.
Additionally, it aimed to discard the case, arguing that since the dispute involves a civil or commercial matter, the New York Supreme Court lacks authority to handle such cases.
CryptoMoon contacted Chainalysis, but the firm declined to comment on the ongoing court case.
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2024-10-16 20:32