Lu

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA San Francisco Division BIN LU, Case No. 23-cv-02152-LB

Plaintiff, ORDER GRANTING MOTION TO

DISMISS

v. Re: ECF No. 19 ENIGMA MPC, INC., et al., Defendants. 16 INTRODUCTION Defendants Can Kisagun and Guy Zyskind founded a company called Enigma (also a defendant) to develop two products for sharing and analyzing encrypted data. They funded the development with an initial coin offering (ICO) of a cryptocurrency called ENG tokens. Plaintiff Bin Lu, a Singapore resident, bought 280,000 ENG tokens for $1.4 million on Binance, a secondary market for digital-currency exchanges. Three years after the ICO, the SEC ordered that it violated the Securities Act of 1933 because it was a sale of unregistered securities. The plaintiff alleges that the defendants replaced Enigma with a new project called the Secret Network (created by their new company SCRT Labs) and allowed buyers of…