Toxic Funders

[nodummy]

They could take the toxic funder to court and contest the legitimacy of the debt contract.

The same arguments that work for the SEC can also work for the Issuer in a Civil Suit.

In some cases, even if it doesn't result in the debt instrument being voided, it can lead to a settlement that is much more favorable/fair to the Issuer.

Of course lawyers aren't free, so the amount of debt should be worth the effort and the Issuer should use an attorney with experience with this type of litigation.