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SolidX information lawsuit in opposition to VanEck for "plagiarism" of the Bitcoin ETF

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Global investment management firm VanEck is facing a lawsuit by blockchain company and former partner SolidX over a Bitcoin ETF that VanEck filed for SEC approval less than two weeks ago.

In 2017, VanEck became the first company to register an exchange-traded Bitcoin fund registered under the Investment Company Act, while SolidX has been working on launching a Bitcoin ETF since 2015. The two companies partnered with SolidX in June 2018, and the in-depth crypto experience is touted as an addition to VanEck's extensive background in issuing financial products.

After withdrawing their most recent joint application for a Bitcoin ETF in September 2019, the two companies split in August 2020. SolidX's complaint describes the split as a “malicious termination” of their agreement.

On December 31, VanEck announced that it had filed a new application for a Bitcoin ETF.

According to the lawsuit, VanEck's SEC filings suggest that the company "was secretly working on its own Bitcoin product despite telling the world that it is" married "to SolidX. The blockchain company claims:

“It is bad enough to use the work and work product of SolidX to compete with it, but the registration statement filed by VanEck would be labeled plagiarism in any other context: the structure of the Bitcoin ETF proposed by VanEck is essentially identical or virtually identical to the structure for which SolidX applied for SEC approval. "

The plaintiff also claims that "within weeks of the termination of the contract, VanEck began to announce products that are directly in competition" and that VanEck "could not have started issuing [those products] without opposing the SolidX interests while he was still his business partner ".

In November, VanEck launched a physically secured, exchange-traded Bitcoin note on the German market of Deutsche Börse Xetra.

SolidX states that VanEck's “marquee” brand and “credibility” as an ETF issuer have communicated its decision to partner with the company. VanEck hired "little or no know-how in Bitcoin" and SolidX for its know-how in relation to crypto assets.

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Melinda Martin