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Developers may be sued for fraud when they knowingly misrepresent or withhold information from a distinct customer.[ The claims made on the website and the information in the whitepaper associated with a software program and protocol bind the developers to the delivery of the specified product.
The contract, warranty and effects of misrepresentation would typically limit financial exposure to the price of a product. In the case of Bitcoin, the end product extends into tokens that are offered as a service and commodity. Further, this form of software malfeasance may be sufficient to create a tortious liability. Tort law extends the liability that applies to the developers.
Although “reasonable care” provides some level of protection to the software developer, this implies that they are following the stated purpose of the software and that they are not misrepresenting the project.
CSW
May 4, 2021
https://metanet-icu.slack.com/archives/C5131HKFX/p1620144786009700?thread_ts=1620144786.009700&cid=C5131HKFX
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