A lawsuit has reportedly been filed against the Elastos Foundation (ELA) and its partner Huobi Global for hosting an unauthorized securities sale.

Accordingly, the class-action lawsuit brought by plaintiff Mark Owen claimed that Elastos ICO taking placed on Jan 2018 violated Section 5 of the Securities Act 1933 because the sale was failed to register with the United States Securities and Exchange Commission (SEC). 

The sale reportedly targeted US residents through various marketing efforts. The New York Supreme Court has been asked to summon Elastos Foundation and Houbi to answer complaints from investors. 

“The defendants brazenly disregarded these well-established U.S. securities laws by, inter alia, failing to register ELA securities with the SEC,” the leaked summons filing reads.“No defendant in this action was registered with the SEC as a broker or dealer as required by law to legally sell securities in the United States.” the summons details.

The court has not issued any formal summons at the time of writing.