Investors in a bitcoin-farming operation can proceed with their federal suit after giving a U.S. District Court judge in Camden a primer on the virtual currency at the center of the case.
U.S. District Judge Joseph Rodriguez ruled Thursday in Gordon v. Dailey that the court has diversity jurisdiction to hear the case, allowing him to sidestep whether federal question jurisdiction exists under federal securities laws.
The investors argued the court had both federal question and diversity jurisdiction, but they initially provided no information about the amount of damages. With regard to federal question jurisdiction, plaintiffs claimed that although the investments at issue are not bonds in the traditional sense, they are investment contracts and therefore are subject to federal securities laws.
"Jurisdiction is jurisdiction. He doesn't need to go to the next step," Christopher Hopkins, the plaintiffs' lawyer, said of the ruling. Hopkins, of McDonald Hopkins in West Palm Beach, Florida, was not troubled by the judge's failure to resolve whether federal securities laws apply. Hopkins said he could proceed with his claims, including violations of securities law, now that the court found jurisdiction.
Click here to read the full article from the New Jersey Law Journal.