The issuer of a controversial cryptocurrency which can only be sold on a single exchange in lots of $ 125 per day is under pressure from an Australian law firm.
Queensland-based law firm Salerno Law plans to file a lawsuit accusing BPS Financial Limited – the company behind the QOIN token – of fraudulent conduct and pyramid sales of financial products, as well as non-compliance with financial services regulations. The lawsuit seeks $ 100 million in damages.
Salerno Law, which specializes in cryptocurrency litigation, began collecting expressions of interest from investors and traders who had suffered losses. due to the seemingly arbitrary restrictions placed on QOIN sellers last week.
QOIN tokens are issued on the blockchain Qoin, owned by the company. As a result, QOIN is not supported by decentralized exchanges and can only be traded through the “Block Trade Exchange” (BTX Exchange), which prevents users from selling more than $ 125 of the token on a daily basis.. However, users can make QOIN purchases between $ 100 and $ 10,000.
BTX is registered with the Australian Securities and Investments Commission (ASIC).
Both BTX Exchange and BPS and Qoin are controlled by the same two men, Tony Wiese and Raj Pathak.. Pathak and Wiese are also the joint directors of Bartercard, a barter system that enables companies to exchange goods and services through a proprietary credit system called “Trade Dollar”.
Salerno Law says he spoke to several Qoin holders who say they had significant difficulty selling or withdrawing the token on the BTX exchange. and redeem the token.
It has been claimed by owners and traders that due to the terms of the BTX exchange, they cannot accept Qoin payments or exchange the token for fiat money, leaving them with a useless token.
Qoin denies these claims and calls them “unfounded” in a statement posted on its website on October 28.
Public comments from Qoin users also provide scathing ratings of the project..
“Qoin is a TOTAL joke. Stay away from this company and their dirty deals”, posted by a user on the product review website.
“0 is my score. This is NOT, and I repeat again, it is NOT an investment. It is a closed exchange system between companies. Currently, once you’ve deposited your funds, your maximum withdrawal limit is $ 125 if you can“added Michelle from New South Wales.
Salerno’s lawsuit isn’t the first time Qoin has come under fire; the local industry association Blockchain Australia has terminated Qoin’s membership and is demanding that its name and logo be removed from marketing campaigns this February for allegedly involved in pyramid sales..
“The former member has been asked to stop using the Blockchain Australia logo and name in connection with its commercial or promotional activities.”, then wrote Blockchain Australia.