Summary
- Strategy and its executives have been sued in a class action for allegedly making false statements related to the strategic reserve of Bitcoin.
- The false statements reportedly involve failing to properly disclose the risk of losses due to the decline in Bitcoin prices.
- Investors argue that Strategy, being a leveraged company on Bitcoin, should have been able to predict the risks adequately.
Strategy and its executives have been sued in a class action for allegedly making false statements related to the strategic reserve of Bitcoin (BTC).
On the 19th (local time), Walter Bloomberg reported, "A class action has been filed against Strategy and its executives," stating "allegations of false statements regarding Bitcoin reserve strategy." The plaintiffs are reportedly claiming that Strategy failed to properly disclose the risk of losses due to the decline in Bitcoin prices.
Meanwhile, 0xngmi, the founder of DeFiLlama, pointed out, "Strategy claims to be a leveraged company on Bitcoin. It is quite predictable what will happen if a decline occurs."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
