ICO securities class-action against Unikrn is kept out of arbitration, but is that bad for them?

Quick Take

  • Hastings v. Unikrn, Inc. 2020 Wash.App. LEXIS 808, is a new Washington State court of appeals decision involving a putative securities class action arising out of 2017 token sale.
  • Defendants moved to compel arbitration based on an arbitration clause in the sale’s terms of service.
  • The Court said that there wasn’t sufficient evidence to find that the buyer had agreed to the terms, so it affirmed a trial court ruling keeping the case out of arbitration and in court.
  • The case illuminates the challenge of creating a work flow that can be used to enforce online terms of service.
  • It also raises questions about the pros and cons of arbitration, which are discussed following a summary of the court’s opinion.
A court has refsused to enforce an arbitration clause in an ICO securities class action. Here's why that matters.

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Oct 15, 2021, 2:54AM UTC