TechFlow reports that Texas federal judge Robert Pitman dismissed on Monday a securities class-action lawsuit against the operators of the Bancor protocol.
Judge Pitman adopted the findings of a magistrate judge, agreeing that the plaintiffs failed to establish that U.S. courts have jurisdiction over the foreign defendants.
The court ruled that Bancor's overseas operations are not subject to U.S. securities laws, as the plaintiffs did not demonstrate that the relevant cryptocurrency transactions occurred in the United States or fell within U.S. judicial jurisdiction.
The magistrate judge found that Bancor, its founders, and related entities based in Israel or Switzerland lack sufficient ties to the United States, and therefore the court lacks jurisdiction over them.
The plaintiffs had previously alleged that Bancor promoted its "impermanent loss protection" feature to attract liquidity providers, leading to over $2.3 billion in cryptocurrency investments. In 2022, Bancor suspended the protection mechanism after a large-scale withdrawal triggered payment obligations to liquidity providers.
