Filecoin investors were inappropriately encouraged to buy FIL tokens. Protocol Labs did not register the FIL token with the SEC; nor did the Company seek an exemption from registering the FIL tokens as securities. The SEC, in turn, has already found that FIL tokens are securities.

Nevertheless, Protocol Labs and its insiders used misleading marketing and promotions to inflate the price of the FIL token by touting the growth prospects for investors. These promotions mislead investors into purchasing the FIL tokens at artificially inflated prices.

Once their promotional efforts were completed, Filecoin and its insiders effectively “pulled the rug” on retail investors, leaving them with tokens that had lost 97.7% from the inflated price high in April 2021.

As a result, individual investors in FIL tokens are now joining together through a class action brought by law firm Scott+Scott, to seek restitution for losses incurred from the purchase of FIL tokens. If you suffered losses in association with the purchase of FIL tokens between April 2021 through the present you are encouraged to reach out to Scott+Scott to learn more about your legal rights.