Legal

Wall Street data giant Factset is suing an affiliate company of Blockchain Terminal

Quick Take

  • One of Wall Street’s largest data providers is taking legal action against an affiliate company of Blockchain Terminal.
  • The suit cites ‘failure to pay under a licensing agreement,’ assuming the product has not been delivered.

Multi-billion dollar financial-data firm Factset is suing CG Blockchain, an affiliated company of Blockchain Terminal (BCT Inc), for breach of contract, according to New York court filings from January 3. 

The lawsuit follows The Block’s recent investigation of BCT Inc., which shares its management with CG Blockchain. The report revealed how the firm was secretly run by Boaz Manor, who in 2012 was sentenced to prison for his role in an $800 million hedge fund that came under investigation by Canadian authorities. The report also shared accounts of former employees who questioned whether the company’s Bloomberg-esque trading terminal for crypto was legitimate. Manor has since said it is a functional product. The FBI is also investigating the company, sources have told The Block.

According to the allegations in the lawsuit, Factset announced a partnership with CG Blockchain in February last year offering its clients access to their crypto products. Now, it seems that Factset is suing CG Blockchain for ‘failure to pay under a licensing agreement,’ assuming the product has not been delivered. Factset, a provider of data technology software to Wall Street firms, has removed a February press release of its tied to Blockchain Terminal from its website. The firm publicly trades on NYSE and has a market capitalization of $7.7 billion. 

Factset is not the first to take legal action against CG Blockchain. Clarity LLC, a NY-based staffing company that CG Blockchain stiffed after using their HR services, sued the company for over $150,000. Court filings show that CG Blockchain did not answer the lawsuit, and the plaintiff has requested a default judgment be entered.
 
A third lawsuit was filed by investment account Corram Holdings LLC, which has also personally sued Edith Pardo and Bob Bonomo, Blockchain Terminal’s former President.
 
The filing claims that “the defendants both individually and collectively, engaged in a fraudulent scheme to dupe Corram’s principal Jeffery Ramson on into purchasing $150,000 of cryptographic tokens…The proof likewise shows that no defendant intended to use Coram’s $150,000 investment for the ICO.”  The filing claims that Manor admitted to the plaintiff, Mr Ramson, that the firm had run out of money by July 2018.
 
Edith Pardo is the attorney who signed CG Blockchain’s Form D filing with the SEC. She is an executive at public relations firm Estey-Hoover.
 
“It appears, according to the plaintiff, that Ms Pardo was involved in raising funds. If that’s true, Ms Pardo has a lot of explaining to do,” crypto lawyer David Silver told The Block. He added, “This litigation is exactly what should be expected given the press BCT received. And a lot of plaintiffs claim they have lost money in ICOs where management overpromised and underdelivered. So it will be interesting to see how this plays out as a precedent.”