UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA
SECURITIES AND EXCHANGE
COMMISSION, Case No. 20-cv-04188-RS
Plaintiff,
ORDER DENYING MOTION TO
v. DISMISS
NAC FOUNDATION, LLC, et al., Defendants.
I. INTRODUCTION In successfully raising millions through an “initial coin offering” (“ICO”), the NAC Foundation (a blockchain development company), along with its CEO, Marcus Rowland Andrade (collectively, “defendants”), also raised a few governmental eyebrows. Two enforcement actions followed: a criminal indictment against Andrade for wire fraud and money laundering, and this civil suit, brought by the Securities and Exchange Commission (“SEC”), alleging the fraudulent and unregistered sale of digital securities in violation of the 1933 Securities Act and 1934 Securities Exchange Act. Apparently keen to punch back, defendants now move to dismiss, insisting the SEC’s complaint is legally deficient, factually erroneous, and borderline…