Bullish, the cryptocurrency exchange funded by Block One, has reportedly purchased CoinDesk in an all-cash deal with undisclosed terms.

This comes after a previously reported deal with Matthew Roszak and Peter Vessenes appears to have fallen apart.

CoinDesk’s current parent company, Digital Currency Group, has been facing a series of problems, including civil lawsuits that allege fraud. 

What is Bullish?

Bullish is a cryptocurrency exchange founded in 2021 with an investment from Block One. Block One was the firm that conducted a purported $4 billion dollar ICO for the EOS token.

Block One ended up paying a $24 million fine to the Securities and Exchange Commission for selling unregistered securities.

Bullish initially intended to go public using a Special Purpose Acquisition Corporation (SPAC) at a valuation of $9 billion, which included approximately $6 billion in assets that it received from Block One. This was eventually called off following a failed settlement between Block One and EOS investors. 

Read more: Who is CoinDesk’s likely buyer Matthew Roszak?

One of Bullish’s key distinguishing features was that “Bullish cross-hashes to the EOS Public Blockchain to facilitate externally verifiable state integrity.” Protos was unable to find any information on Bullish’s website or support documents about how one would go about using information on the EOS blockchain to externally verify state integrity and has reached out to Bullish to see if they can provide additional information on how this process works. 

Tom Farley, the CEO of Bullish and former president of the New York Stock Exchange, stated that the firm intends to operate CoinDesk as an “independent subsidiary,” maintain the current management team, and will form a new editorial committee led by former Wall Street Journal editor-in-chief Matt Murray.

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A New York judge has refused to green-light a nearly-$30 million settlement against blockchain software company Block.one on the grounds that the lead plaintiff is unable to properly represent the class.

As reported Law360, Crypto Assets Opportunity Fund LLC claims that the Cayman Islands-based firm’s $4 billion EOS token ICO broke securities laws. Specifically, that it sold the tokens without registering them with the US Securities and Exchange Commission (SEC).

The plaintiffs also allege that Block.one wasn’t straight about how it used proceeds from the sale. It originally said that the funds would be used to further develop its blockchain technology but it actually siphoned the money to its Hong Kong-based trading arm and invested in digital assets and government bonds.

This, says Crypto Assets, meant the company’s tech, along with the price of the token, suffered.

However, in a 25-page order, District Judge Lewis A. Kaplan said that there are too many questions regarding the proportion of tokens bought by Crypto Assets compared with the domestic purchases by absent class members.

“This follows from the fact that [Crypto Assets], in view of the proportion of its investments made in domestic versus foreign transactions, may have had an incentive to accept a lower settlement offer than would have been insisted upon by absent class members who purchased only or more predominantly in domestic transactions,” wrote Kaplan (via Law360).

Crypto Assets is happy to take less but can’t speak for others

Kaplan also raised questions about how the parties involved have agreed to split the $27.5 million Block.one settlement. It had been decided to dish out the funds on a pro-rata basis but, as Crypto Assets accepted an offer 75% less than the overall loss to class members, the amount to be paid out is reduced.

Kaplan added: “In this case, the court has not been persuaded that the requirement of adequate representation has been satisfied.”

Read more: New York judge reluctantly allows Voyager to settle credit card bills

“And it hastens to add that it implies no misconduct or criticism of the lead plaintiff or its experienced and well regarded lead counsel. The problem … is a structural problem having roots in the unusual market that the case Concerns,” (our emphasis).

Block.one previously agreed to pay out $24 million but didn’t admit to or deny the SEC’s allegations.

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