CryptoLaw founder John Deaton has announced that the first thousand participants have joined a class action lawsuit by Ethereum (ETH) holders against the New York State Attorney General (NYAG). The gathering of participants began just four days ago, on March 10, when in a lawsuit against crypto exchange Kraken, prosecutor Letitia James stated that ETH is a security. The forthcoming class action has been named appropriately: "Ethereum Is Not a Security Class Action."
While there is no direct regulatory threat to Ethereum at the moment, allegations from the officials involved in the lawsuit, if left unchecked, could create trouble in the future. In addition to ETH, the prosecutor's statement also mentions LUNA and UST.
As of now, says Deaton, a couple hundred claimants directly from New York are missing to give more weight to the case. There are only 57 New Yorkers out of a thousand participants at the moment, he notes.
XRP holders v. SEC
The pro-crypto lawyer was previously involved in gathering participants for the SEC v. Ripple case. At the time, Deaton was able to bring together more than 75,000 XRP holders in a class action lawsuit against SEC, become their representative and push the collected information into the main case. Testimony from XRP holders about their motives for buying is now thought to play a key role in determining the cryptocurrency's status as a security.