- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
New York Law Firm Files Class Action Lawsuit Against Strategy, Alleging Misleading Bitcoin Investment Disclosure
BlockBeats News, July 3rd, according to The Block, the New York-based law firm Pomerantz LLP recently filed a class-action lawsuit against Michael Saylor-led Strategy company (formerly MicroStrategy), alleging that the company made false and misleading statements about the profitability of its Bitcoin investment strategy, in violation of federal securities laws. This lawsuit, filed in the Eastern District of Virginia, represents Strategy investors from April 30, 2024, to April 4, 2025. Other investors can join the class-action lawsuit by July 15th.
The key allegations of the lawsuit include that Strategy overstated the profitability of its Bitcoin investment strategy and fund management business, downplayed the volatility risk of Bitcoin, and failed to adequately disclose the impact of adopting the new accounting standard (ASU 2023-08) on its financial statements. Specifically, in the first quarter of 2025, due to the adoption of the new standard, Strategy reported a $5.9 billion unrealized loss on digital assets, causing the stock price to drop over 8% at that time. Pomerantz accuses the company of emphasizing only Bitcoin gains while concealing potential significant losses under fair value measurement.
You may also like
Make Probability an Asset: A Forward-Looking Perspective on Predictive Market Agents
Consumer application issues
Arthur Hayes: The flames of war in the Middle East rise, Bitcoin is bullish
Legendary investor Naval: In the AI era, traditional software engineers have no value?
More absurd than knowing about the war in advance is knowing in advance about the assassination of Soleimani
Key Market Insights on March 2nd, how much did you miss?
How to systematically track high-performing addresses on Polymarket?
From Stanford Lab to Silicon Valley Streets: How OpenMind is Solving the "Last Mile" Problem of the Machine Economy?
PlanX: Reconstructing On-Chain Execution with AI, Moving Towards a New Paradigm
US Judge Allows Binance Unregistered Token Lawsuit to Advance
Key Takeaways: A federal judge in Manhattan dismissed Binance’s petition to resolve a securities lawsuit through private arbitration,…
Crypto VC Paradigm Plans $1.5 Billion Expansion into AI and Robotics
Key Takeaways: Paradigm is setting up a new $1.5 billion fund to explore AI, robotics, and other emerging…
Ethereum Smart Accounts Set to Launch Within a Year, According to Vitalik Buterin
Key Takeaways: Ethereum’s “account abstraction” or smart accounts might be introduced in the coming year through the Hegota…
Bitcoin Recovers After Iran Conflict Shocks Market, Reverses $5K Fall in Just 24 Hours
Key Takeaways: Bitcoin dropped to approximately $63,000 amid tensions but rebounded to $68,200 within a day. Volatility led…
Former Mt. Gox CEO Suggests Hardfork to Retrieve $5.2 Billion in Bitcoin
Key Takeaways: Mark Karpelès, former CEO of Mt. Gox, proposes a Bitcoin network hard fork to access nearly…
South Korea National Tax Service’s Mistake Resulted in $4.8 Million Crypto Loss
Key Takeaways South Korea’s National Tax Service inadvertently exposed private keys, resulting in a $4.8 million crypto loss.…
Morgan Stanley Seeks National Trust Charter for Cryptocurrency Custody
Key Takeaways: Morgan Stanley has initiated a significant step toward digital asset management by applying for a national…
Solana Price Outlook: Major ETF Inflows Hint at Institutional Moves
Key Takeaways: Solana has experienced substantial ETF inflows, prompting speculation about institutional buy-in. On February 25, Solana recorded…
Bitcoin Price Prediction: Wikipedia Founder Warns BTC Could Plunge Below $10K — Should Investors Worry?
Key Takeaways Wikipedia co-founder Jimmy Wales warns Bitcoin might decline to below $10,000, prompting a bearish outlook. Wales…
App