FILED: NEW YORK COUNTY CLERK 01/31/2019 02:49 PM INDEX NO.

650628/2019
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 01/31/2019

SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF NEW YORK
---------------------------------------------X
:
MARK OWEN, : INDEX NO.

Individually and on Behalf of : DATE PURCHASED:

All Others Similarly Situated :
:

Plaintiffs, :
:

SUMMONS WITH NOTICE

vs. .
:
ELASTOS FOUNDATION, :
HAN,"
FENG HAN "AKA SUNNY FENG :
RONG CHEN, FAY LI, :
ZACH WARSAVAGE, STEVEN S. NAM, :
LEE WILSON, BEN LEE, :
HBUS HOLDCO INC. and :
HUOBI GLOBAL LIMITED, :
:
:
Defendants. :
-------------------------¬-----X

TO THE ABOVE-NAMED DEFENDANTS:

YOU ARE HEREBY SUMMONED and required to serve upon plaintiff, at the address

stated below, a notice of appearance or demand for a complaint within 20 days after service of

this Summons (not counting the day of service itself), or within 30 days after service is complete

if the Summons is not delivered personally to you within the State of New York.

YOU ARE HEREBY NOTIFIED THAT should you fail to serve a notice of

appearance or demand for a complaint, a judgment will be entered against you by default for the

relief demanded herein.

Nature of the Action: This is a proposed class action pursuant to Section 12(a)(1) of the

Securities Act, 15 U.S.C.A. §77l, and Section 15(a) of the Securities Act, 15 U.S.C.A. §77o. The

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FILED: NEW YORK COUNTY CLERK 01/31/2019 02:49 PM INDEX NO. 650628/2019
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defendants'
subject matter of this action concerns the solicitation and sale of unregistered

securities-the Elastos cryptocurrency (the "ELA Securities")-to investors in the United States

throughout 2018 in direct violation of Section 5 of the Securities Act of 1933, 15 U.S.C. § 77e.

Specifically, the ELA Defendants targeted U.S. investors with the ELA Initial Coin Offering (the

"ELA ICO") and follow-on offerings and engaged in various means of media and public

engagement to solicit investments in ELA Securities by U.S. investors.

The ELA Securities are: (i) a passive investment by the public; (ii) in the Elastos

enterprise; (iii) with the expectation that the ELA Securities themselves will appreciate in value

defendants'
in the public market as the result of the efforts in developing the functionality of the

defendants'
product, as well as the demand for ELA Securities in the market driven by the

marketing efforts.

The ELA ICO, as well as continuous follow-on sales of securities to the U.S. market

conducted by the defendants, are public offerings of securities as defined under federal securities

law. Accordingly, the defendants were required to register the ELA Securities with the United

States Securities and Exchange Commission (the "SEC") pursuant to Section 5 of the 1933

Securities Act.

The defendants brazenly disregarded these well-established U.S. securities laws by, inter

alia, failing to register ELA Securities with the SEC. No defendant in this action was registered

with the SEC as a broker or dealer as required by law to legally sell securities in the United

States.

Relief So=ght: By virtue of the foregoing, plaintiff, on behalf of himself and the

proposed class, seeks an order of rescission of the investments made by plaintiff and the

proposed class relating to the ELA ICO and additional direct sales by the defendents, and/or

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incidental damages and consequential damages, together with interest thereon, in an amount not

less than $200,000,000 dollars.

Venue: Plaintiff designates New York County as the place of trial because the plaintiff

resides and works in New York and the defendants transact and regularly
solicit business in New

York County.

Dated: New York, New York

January 31, 2019

Warren A. Rd tWsq.

RAITI PLLC
25th
80 Broad Street, FlOOr

New York, NY 10004

Tel: (646)
916-1404

Email: wraiti@raitipllc.com

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