"Allegations of Omitted Bitcoin Risk Disclosure… Strategy Faces at Least 5 Class Action Lawsuits"
Summary
- The U.S.-listed company Strategy is reportedly facing at least five class action lawsuits over alleged omissions in Bitcoin-related risk disclosures.
- Plaintiffs claim that Strategy failed to transparently disclose gains and losses from Bitcoin investments between April 30 of last year and April 4 of this year.
- Strategy has strongly refuted these claims in SEC filings, stating that it is currently difficult to predict the outcome of the lawsuits or the potential scale of the losses.
The U.S.-listed company Strategy (formerly MicroStrategy), which drew attention for its large-scale purchase of Bitcoin (BTC), has reportedly faced at least five class action lawsuits from investors.
On the 27th, Decrypt, a cryptocurrency-focused media outlet, reported that "five law firms have filed class action lawsuits against Strategy," adding, "the plaintiffs claim that the company failed to transparently disclose profit and loss information related to Bitcoin investments from April 30 of last year to April 4 of this year, causing them harm."
Meanwhile, Strategy has previously stated in disclosures submitted to the U.S. Securities and Exchange Commission (SEC) that it "strongly plans to refute these claims," and added, "it is currently difficult to predict the outcome of the lawsuit or the scale of potential losses."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.![[Exclusive] KakaoBank meets with global custody heavyweight…possible stablecoin partnership](https://media.bloomingbit.io/PROD/news/a954cd68-58b5-4033-9c8b-39f2c3803242.webp?w=250)
![Trump ally Myron, a Fed governor, resigns White House post…pushing for rate cuts until Warsh arrives? [Fed Watch]](https://media.bloomingbit.io/PROD/news/75fa6df8-a2d5-495e-aa9d-0a367358164c.webp?w=250)
