ProCap Newsletter No. 76

 Dear Clients,

When discussing investment platforms such as ProCap, attention is often focused primarily on the company operating the platform and the individuals directly involved in its management.

However, investors may have first learned about an investment opportunity through someone entirely different – a promoter, referral partner, financial intermediary or another person who encouraged them to invest.

This raises an important question:

Can individuals who promoted an investment platform also be held responsible for investors’ losses?

Promoting an investment is not automatically unlawful

Investment platforms frequently rely on third parties to attract new clients. These may include marketing representatives, referral partners, independent promoters or individuals who recommend an opportunity within their personal or professional networks.

The mere fact that someone promoted a platform does not automatically mean that they participated in fraudulent activity or bear legal responsibility for subsequent investor losses.

The circumstances of their involvement are what matter.

When could a promoter’s conduct become legally relevant?

An important distinction exists between someone who simply recommended an investment and someone who knowingly participated in misleading investors.

Depending on the applicable law and the circumstances of the case, questions may arise about whether a promoter made false representations, concealed material information, knowingly encouraged investments through misleading promises or played a more direct role in the activities under examination.

It may also be relevant whether the person received commissions or other financial benefits for attracting investors.

However, receiving compensation for promotional activities does not, by itself, establish wrongdoing.

Why could this matter to ProCap investors?

In cases involving investment platforms, identifying the potential responsibility of relevant participants may be important both for establishing what happened and for assessing available legal remedies.

Depending on the applicable legal framework, responsibility may extend beyond the entity operating a platform if the conduct of other individuals or companies independently meets the relevant legal requirements.

This may also become significant when considering potential avenues for compensation.

At the same time, it is important not to assume that every person who recommended ProCap or introduced an investor to the platform necessarily bears responsibility for any financial loss.

What is the current status of the ProCap matter?

At present, we have no new verified procedural developments concerning ProCap that would change the previously communicated status of the matter.

We will continue to follow relevant developments and assess any information that may be significant for identifying legally responsible parties and protecting the financial interests of affected investors.

Should any verified development create an opportunity for further legal action, we will inform our clients accordingly.

No additional action or resubmission of previously provided documentation is required at this time.

Thank you for your continued trust.

Kind regards,
Attorney Zoran Miljaković