A united coalition of investors has taken decisive action, announcing the initiation of a mass tort lawsuit against Supra (“SupraOracles”), also known as Unity Chain, Inc. The legal action brings forth a spectrum of potential claims, including alleged fraudulent inducement, potential financial mismanagement, and possible breaches of material changes naming co-founders Joshua Daesung Tobkin and Jon Evans Jones.
Reportedly, Supra has allegedly spent at least $30 million, encompassing the $24m in funding disclosed in September 2023 and even their most recent public raise in October 2023. Supra faces intensified scrutiny of possible fraudulent non-disclosure in attempts to extend its runway with exaggerated claims to would-be investors along with potential negligence in the use of its limited remaining funds. This includes unverified reports that the company, facing ongoing financial constraints, allegedly withheld employee’s salaries as recently as the month before its public sale in H2 of 2023.
Investors present the following potential claims against SupraOracles:
- Alleged Fraudulent Inducement and Fraudulent Concealment: Investors assert that SupraOracles may have potentially misled them with promises and tactics to attract investments, particularly concerning the repayment to 3AC and FTX liquidators and insinuations to publicly fundraise with Republic.com. This includes many other purported instances of possible misrepresentations in the financial health of the company, subject to legal examination.
- Potential Negligent Use of Funds: Investors argue that SupraOracles' use of funds, including expenditures like a Bored Ape Yacht Club NFT acquisition and alleged near-million-dollar salaries, may constitute potential negligent financial practices, which in turn may have potentially jeopardized the project's financial stability, pending legal investigation.
- Reported Claims of Material Changes: A large cohort, mostly composed of public round investors, reportedly pursue claims against alterations to offering terms, modifications to target or maximum offering amounts, and non-disclosure of the company’s financial health. Claimants have also raised concerns regarding alleged disparities in the discounts and quantity of tokens offered to each party at TGE (“Token Generation Event”) previously involved in the same investment rounds.
- Potential Securities Concerns: Investors argue that SupraOracles allegedly led investors to believe purported OKX and ByBit exchange listings could yield a multiple in investment returns. Additionally, an airdrop campaign with purported 2-year locked vesting has been cited as promoting the “Blast Off” of SupraOracles, an alleged, “expectation of profits, unlawful securities touting, and evidence of state of mind,” amongst US participants. Investors are primed to explore claims related to potential U.S. Securities Laws violations dependent on the listing of a live token.
In response to escalating concerns, a coalition of impacted investors is initiating collective legal action against Supra. SupraOracles investors eager to join the mass tort lawsuit for potential refunds are encouraged by the overseeing law firm to confidentially complete a Google Form. The law firm is dedicated to thoroughly reviewing all submissions to further the existing substantial body of evidence and claims within this robust case, ensuring that affected investors have a comprehensive opportunity to seek redress for their grievances against SupraOracles.
As the mass tort lawsuit unfolds, it underscores the paramount importance of financial due diligence in navigating the ever-evolving landscape of blockchain investments. Legal advice should be sought for a comprehensive understanding of the situation.