MoviePass executives are facing criminal charges after misrepresenting its business model
one in Recent TweetRipple CTO David Schwartz says US prosecutors bringing federal charges against MoviePass mean “nothing” for cryptocurrency, as it is just a run-of-the-mill securities fraud case. Schwartz believes that there is nothing unusual or significant in this matter.
Mitch Lowe and Ted Farnsworth, two former MoneyPass executives, have been accused of misleading investors by federal prosecutors.
MoviePass assured investors that its MovieGoing plan, which offered unlimited tickets for $9.95 per month, would eventually turn profitable by making it possible to receive critical information from customers thanks to artificial intelligence-powered technologies.
However, the prosecutors believe that the executives made deliberately misleading statements in order to amplify the shares of Helios and Matheson Analytics, MoviePass’s parent company. In fact, the prosecutors claim that the technologies touted by Farnsworth and Lowe didn’t exist in the first place.
FBI Assistant Director Michael Driscoll says such fraud schemes undermine confidence in the markets.
The lawyers of the executives insist that they acted in good faith. They are confident that facts will demonstrate this.
Ripple was sued in December 2020 at the US Securities and Exchange Commission for violating federal securities laws with a massive XRP sale. The high-stakes case, which is expected to have significant implications for the industry, is expected to be resolved in the first half. of 2023.
