In Brief:
- Salerno Law plans to file a $100M class suit against BPS Financial Limited.
- BPS Financial Limited is the company behind the Qoin token.
As per reports, BPS Financial Limited, the issuer of a rather contentious cryptocurrency that can only be sold in batches of $125 daily on a single exchange is facing a repulsive drive from an Australian law firm.
Salerno Law, a Queensland-based law firm plans to file a class-action lawsuit against BPS Financial Limited, the company behind the QOIN token. According to the complaint, BPS is accused of engaging in misleading and deceptive conduct and pyramid selling of financial products. It is also accused of failing to comply with financial services regulations. The suit will seek $100 million in damages.
Salerno Law, which holds expertise in crypto controversies, started by collecting expressions of interest from investors and traders who suffered losses last week due to the imposition of arbitrary limits laid down by QOIN sellers.
QOIN tokens are issued on the company’s own blockchain- Qoin blockchain. Inherently, QOIN shouldn’t be supported by decentralized exchanges, and may solely be swapped utilizing the ‘Block Trade Exchange’ (BTX Exchange)which prevents customers from promoting greater than $125 price of the token every day. However, customers are able to make QOIN purchases between $100-$10,000.
Interestingly, BTX is enrolled with the Australian Securities and Investments Commission (ASIC).
Salerno Law says that it has spoken to a number of holders of Qoin, who say they’ve experienced problems promoting or withdrawing the token on the BTX alternate and redeeming the token at retailers.
Qoin, however, has denied these claims, calling them ‘baseless’ in its statement.
Moreover, public reviews by Qoin users also gave a sneak peek into its severe project evaluation
“Qoin is a total joke. Well stay away from this company and it is dirty conduct,” posted one user on the website’s Product Reviews.
“0 is my rating. It is not and again I will repeat this, not an investment. This is a closed barter system between businesses. Once your money comes in, you can currently withdraw up to $125, if You can,” said Mitchell from New South Wales.
In addition to the present controversy, Qoin has been broiling in other controversies too. For instance Blockchain Australia had also expelled Qoin’s membership and requested its name and logo be removed from marketing promotions in February this year, amidst rumoured allegations that it is engaged in pyramid sales.
The Aussie crypto domain has been undergoing a lot of late. For instance, in September, Binance announced that they are going to end derivatives offerings services such as futures, options, and Leveraged tokens in Australia by the end of this year so as to comply with the local regulations.
