Queensland-based law firm Salerno Law intends to launch a $ 100 million class action lawsuit alleging BPS Financial Limited – the company behind the QOIN token – of misleading and fraudulent practices of selling financial products in a pyramid scheme and financial services fail to comply with regulations.
Salerno Law, which specializes in cryptocurrency disputes, has started attracting the interest of investors and traders who suffered losses last week due to arbitrary limits for QOIN sellers.
QOINs are issued on the company’s own Qoin blockchain. As a result, QOINs are not supported by decentralized exchanges (DEXs) and can only be traded through the Block Trade Exchange (BTX Exchange) – which prevents users from selling more than $ 125 in QOIN per day. However, users can buy it anywhere from $ 100 to $ 10,000.
BPS Financial Limited is registered with the Australian Securities and Investments Commission (ASIC).
BTX, BPS, and Qoin exchanges are all controlled by Tony Wiese and Raj Pathak. Pathak and Wiese are joint directors of Bartercard, an exchange system that enables companies to exchange goods and services through a proprietary credit system known as “trade dollars.”
Tony Wiese (left) and Raj Pathak (right)
Salerno Law said it spoke to a number of QOIN holders who had significant difficulty selling or withdrawing tokens on the BTX exchange and exchanging them at retailers.
“The owner and seller claimed that due to the terms of the BTX exchange, they could not pay or exchange QOIN for fiat currency, leaving only tokens of no use.”
Qoin denied these allegations, saying they were all “baseless” explain published on its website on October 28th.
Qoin users also publicly express themselves sharply about the project.
“Qoin is a complete scam. Stay away from this company and it’s dirty, smart business, ”one user post on the product review website.
“0 is my rating. I repeat again, it is not an investment. It is a closed system of transactions between companies. After you’ve put in money, the current maximum you can withdraw is $ 125, ”added Michelle from New South Wales.
This is not the first time Qoin has come under fire as local industry association Blockchain Australia removed Qoin’s membership and, in February this year, amid controversy, called for its name and logo to be removed from its marketing programs.
“Qoin was forced to stop using the Blockchain Australia logo and name in business or promotional activities,” Blockchain Australia wrote at the time.
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