The popularity of the cryptocurrency industry in 2021 came not only with good news, but also with bad news.
A crypto money project, which has been seriously suspicious lately, seems to pay the price with a lawsuit.
A cryptocurrency that sold for $125 on a single cryptocurrency exchange has now been sued by an Australian law firm.
QOIN Token is in Trouble
Queensland-based law firm Salerno has sued the cryptocurrency firm BPS Financial Limited.
Cryptocurrency released by the company QOIN known as tokens. Emphasizing that this does not comply with financial regulations and stating that it resembles a ponzi structure, the plaintiff demands $100 million in damages.
The law firm, which contacted investors and stated that it represents some of them, emphasized that the sales made last week were seen as fraud by many investors.
The sale of QOIN tokens was made on the company’s own blockchain network, the Qoin blockchain, so QOIN could not be used on any other exchange. It was only traded on the project’s own exchange, the BTX Exchange, and users were prohibited from selling more than $125 tokens per day. Users could still purchase up to $10,000.
The BTX exchange, on the other hand, is regulated by Australia’s financial regulator, which means that the exchange will also get into trouble. It is known that the BTX exchange BPS company and the QOIN token are controlled by two men, and the case was especially directed against Tony Wiese and Raj Pathak.