Decision of the Day: Fraud Claim Not Stated in Action Over ‘Worthless’ Props Tokens Cryptocurrency

In 2017 Open Props Inc. announced its creation of Props Tokens cryptocurrency. Initial coin offerings for Props Token transactions were governed by Simple Agreement for Future Tokens purchase agreements expressly stating that the Props Tokens “[were] a security.”

Entering a 2018 SAFT plaintiff received Props Tokens under a March 2019 Amended SAFT removing discussion of a decentralized network and establishing Open Props as the sole controller of the Props Network.