A number of investors from the Helbizcoin Inc filed a temporary restraining order and preliminary injunction.
Around 20000 investors want the company to stop destroying smart contracts which supports that supports Helbiz Inc.’s ERC20. An application was filed last week, Ryan Barron and other investors accuse the defendant, Salvatore Palella of fraud.
Investors claimed that there are three major reasons to grant the motion.
Investors allege that the ERC20 token, which has seen its value drop by 99%, was part of an elaborate pump and dump scheme orchestrated by Palella and Helbiz Inc, newsbitcoin.com reported.
In their motion, investors argue that by filing an opposing motion to an earlier filing suggests Palella’s willingness to defend himself. Investors had approached the court for a letter seeking expedited discovery of the defendants’ control over the coin.
Palella’s opposition also supports investors’ claims that the defendant is trying to distance himself from Helbiz Inc so that he avoids liability.
In 2017, during the ICO boom, Palella began promoting Helbizcoin (HBZ) and its associated blockchain platform as a peer-to-peer solution to reinvent the ride-sharing economy.
Capitalizing on the frenzy over crowd-sharing businesses and crypto, Palella raised nearly $40 million from small investors reports quote him saying at the time. Investors believe their case has strong merits and an injunction must be granted, the report added.