We represented Polybius Foundation ‒ which had conducted an initial coin offering (ICO) ‒ in a landmark dispute where one of the buyers, Maksim Velitško, attempted to force a reversal of his token purchase. This was the first time ever that an Estonian court has analysed a tokenholder’s right to unilaterally reverse a token purchase in an ICO context.

First instance court ruling in our client’s favour

The court of first instance ruled in favour of our client, finding that a tokenholder has no right to reclaim money paid when participating in an ICO. The court also held that consumer protection regulation does not extend to participation in ICOs. Until this decision, the issue of applying consumer protection laws to natural persons participating in ICOs had not been fully clear. The tokenholder can still appeal the decision to the circuit court.

Collaboration between teams

The case demonstrated effective collaboration between our finance and litigation teams. The client was represented and advised by litigators ‒ counsel Karl Kask with senior associate Triin Toom ‒ and by capital markets and financial services partner Reimo Hammerberg.