The NAC Foundation denies that AML bitcoin is a security and accuses the U.S. Securities and Exchange Commission (SEC) of unfair conduct as part of the litigation.
Earlier, the SEC accused the NAC Foundation, its CEO Marcus Andrade (Marcus Andrade )and political lobbyist Jack Abramoff (Jack Abramoff )of organizing an unregistered sale of AML bitcoin crypto assets in the amount of $5.6 million, fraud and misleading investors. Abramoff agreed to pay a $50,000 fine as well as pre-judgment interest of $5,501.
However, Andrade disagrees with the Commission’s accusations, and on October 20, he asked a San Francisco federal judge to dismiss the SEC’s lawsuit. Andrade claims that the regulator is deliberately trying to mislead the court by accusing the NAC Foundation of using and offering technology that was allegedly never developed. According to the defendant, the SEC was aware that the NAC Foundation has a patent for a technology aimed at countering money laundering and created specifically for AML bitcoin.
Andrade added that, under the terms of the sale, AML bitcoin is not an investment contract. When buying this crypto asset, users agreed that AML bitcoin is only a means of exchange, not being an investment and not giving the right to a share in any enterprise. The terms of sale state that NAC Foundation clients should not expect a profit from their investments, and AML bitcoin crypto assets should not be considered as debt obligations.
Andrade stressed that the SEC refused to point to a critical element of the Howey test, which helps determine whether an asset is classified as a security. This suggests that the sale of AML bitcoin did not violate securities laws. Therefore, there are no grounds for prosecution. Recall that, as the agency stated last month, token-share exchanges that guarantee the legality of the origin of assets in their accounts will not be subject to regulatory sanctions.