Login
Qoin cryptocurrency set to face class action
Utility token Qoin is currently being investigated for a class action after holders struggled to exchange the coin or use it to pay for real goods and services.
Lauren Croft
The lawsuit is set to be filed in the coming weeks by Salerno Law’s specialist cryptocurrency department on behalf of shareholders, merchants and other parties who allege they have suffered a significant loss in revenue.
The issuer of the token, BPS Financial, are alleged to have “misleading and deceptive conduct … pyramid selling of financial products … fraud ... and failure to comply with financial services obligations and consumer guarantees’’.
“According to its website, BPS claims to have over 35,000 merchants signed up in its ecosystem, which provides investors and holders of Qoin with the ability to pay for real goods and services using the token. BPS also claims that the token can be traded as a digital currency operated by Block Trade Exchange Limited (BTX Exchange), which is a related body corporate of BPS with common directors and shareholders,” Salerno Law noted.
According to Salerno Law, “Qoin has entered into an exclusive trading arrangement with BTX Exchange which, according to its terms, limits users to one daily transaction with a $125 sell limit per day per person, subject to buyer demand”.
“After speaking with parties that currently hold Qoin, Salerno Law understands that holders of the token have experienced significant difficulty in selling Qoin on the BTX Exchange, redeeming the token at merchants or converting it into fiat currency,” the firm said in a statement launching the class action.
“It has been alleged by holders and merchants that they are either unable to accept Qoin payments or exchange the token for fiat currency due to the terms of BTX Exchange, leaving them with a token of no utility. For merchants, this is alleged to have caused a significant loss in revenue.”
The class action will investigate whether BPS breached their obligations to holders of Qoin, including potential breaches of the Corporations Act 2001, the Australian Securities and Investment Commission Act 2001, and the Australian Consumer Law (contained within the Competition and Consumer Act 2010).
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
