HelbizCoin Class Action
Helbiz touted its “HelbizCoin” cryptocurrency (“HBZ”) as the engine for a blockchain-based car-sharing empire. The company’s founder, Salvatore Palella, and a network of insiders instead used the 2018 initial coin offering (ICO) to raise millions of dollars. Then, insiders dumped more HelbizCoin after it was listed on cryptocurrency exchanges. Meanwhile, the company quietly abandoned every key promise and never built a car-sharing app.
Loevy + Loevy represents HBZ purchasers in Barron v. Helbiz Inc., a federal securities-fraud class action. After the trial court dismissed the case, the U.S. Court of Appeals for the Second Circuit reversed and sent it back for full litigation. Discovery is now underway in the Southern District of New York.
At a Glance
Who is affected?
Anyone worldwide who purchased or held HelbizCoin (HBZ) during or after the 2018 ICO and was harmed when the price collapsed.
What it’s about
The complaint alleges a multi-step fraud: (1) false white-paper claims that HBZ would be the exclusive payment method for a car-sharing platform; (2) undisclosed self-dealing sales, wash trades, and money laundering through Genesis wallets; (3) a coordinated “pump” with paid media, Skrill/PaySafe sponsorship, and a $1 opening price; and (4) mass dumping of insider coins on cryptocurrency exchanges that drove HBZ’s value to near-zero.
Current stage
Second Circuit remanded to the Southern District of New York. Motion practice and discovery are now underway.
Claims and relief sought
Securities fraud (§10(b)), Exchange Act manipulation (§9), Commodities-Exchange-Act fraud, RICO, and state consumer-fraud counts. Plaintiffs seek rescission or out-of-pocket damages, disgorgement of insider profits, treble damages under RICO, and injunctive relief forcing deletion of the fraudulent token.
Cost
The litigation is handled on contingency; attorneys are paid only from any recovery. The firm is not currently seeking additional plaintiffs.
What happens next
Discovery is now underway. The court will first resolve document requests and depositions, then decide whether to certify a class of all HBZ purchasers. If the class is certified, every qualifying investor will receive a court-approved notice explaining their rights. We recommend HBZ holders keep copies of exchange confirmations, wallet logs, or bank statements showing their token purchases and sales; those records will make it easier to calculate losses once the claims process begins. Key rulings and future hearing dates will continue to appear on the public docket, and Loevy + Loevy will post major updates on our website’s news page.
FAQs
What is HelbizCoin?
An ERC-20 token issued in 2018 as the alleged sole currency for Helbiz’s promised ride-sharing ecosystem; over 1 billion tokens were minted.
Why does the suit call it a "pump-and-dump"?
Plaintiffs claim insiders secretly bought their own ICO, faked demand, hyped false partnerships, listed HBZ at $1, then unloaded their holdings before the truth emerged.
What kind of documents are useful for proving losses?
Exchange trade confirmations, blockchain-wallet logs, and bank or card statements showing HBZ purchases or sales will help quantify damages when claims are processed.
How long could the case take?
Complex securities class actions often run two to three years after discovery begins, plus possible appeals. Key milestones will be public, including class certification, summary-judgment rulings, and any settlement proposals.
Will the outcome affect other cryptocurrencies I own?
No. The lawsuit targets only Helbiz and conduct related to HBZ. It has no direct impact on unrelated tokens or wallets.
Where can I follow developments?
Significant court filings and orders are posted on the public docket for Barron v. Helbiz Inc., No. 1:20-cv-04703 (S.D.N.Y.). Loevy + Loevy will also publish major updates in the news section of our website.
Key Pleadings
News of the Helbiz Class Action
Why Join a Class Action?
Joining a class action means shared costs, greater leverage, and a real chance to hold wrongdoers accountable—all without taking on the fight alone. And you pay nothing unless we win.i
