The Dubai-based payment platform ZelaaPayAE sued the Bittrex Global exchange for theft, misrepresentation and misleading after failing to list its ZPAE token for over six months.
While the six-digit listing fee has not yet been refunded – but never – ZelaaPayAE said the lawsuit was not about money, but about the company’s reputation.
The listing was due to take place in mid-April, but has so far been left open as Bittrex is faced with legal proceedings in the United Arab Emirates (UAE) and its home country of Liechtenstein.
According to ZelaaPayAE, on April 13, 2021, the company paid Bittrex an undisclosed amount for the listing of ZPAE. As part of the agreement, Bittrex has signed a contract to list and commit the token on the exchange within 7 days of payment. However, Bittrex was delayed stating that they had issues with all of the Tron-based tokens and that ZPAE would most likely not be listed until the first week of June. To make up for the delay, Bittrex has offered to promote ZPAE to its users.
After a full 7 days, their employees came to us and started buying more time related to their work #TRON Blockchain failed, this drama continued for the next several months until they confirmed a listing on May 12 in the first week of June. (2/5) pic.twitter.com/7T46TsoYYT
– ZelaaPayAE (@zelaapay) November 20, 2021
“After 7 days, their employees came to us and started extending their time while their TRON blockchain was being shut down. This drama lasted several months until May 12th, they confirmed in the first week of June. “
With no progress through the end of July, ZelaaPayAE issued an ultimatum to Bittrex, forcing them to close the final listing date or go to court.
“And of course Bittrex didn’t do it in June, so eventually after losing our temper, we asked for a refund on August 29th. They approved the refund, but then we did.” Totally ignored “despite them have submitted the payment confirmation invoices as requested, ”ZelaaPayAE said in a tweet.
When Chris Sinkey, Director of Listings at Bittrex, informed the company in September that ZPAE was not listed due to concerns about plagiarism and fraud, ZelaaPayAE replied that this contradicted numerous statements by employees due to problems with the Tron blockchain.
Since then, the company has taken legal action against Bittrex, listing director Chris Sinkey and CEO Stephen Stoneberg, who signed the ZPAE listing agreement.
Sahil Arora, founder and CEO of ZelaaPayAE, said the company is suing Bittrex for theft, misrepresentation and misconduct. Bittrex misled the community, and ZPAE’s months of removal resulted in pumps & dumps in the short term that severely damaged the company’s reputation.
Since April 13, when payments were made to Bittrex, the ZPAE price has lost more than 68% of its value.
ZPEA price chart from March 1, 2021 to November 22, 2021 | Source: CoinGecko
In the weeks since ZelaaPayAE filed the lawsuit, Bittrex’s listing director contacted the company and said the full amount they paid for the listing will be refunded in a week. However, Arora has little interest in money.
“Trust has been lost, and more important to us than a few hundred thousand dollars lost is professional reputation.”
“I have no real intention of attacking or misrepresenting in any way. I’m just disappointed with the way they handled the projects and want to make it clear that the delay is not our fault. “
Following public reprimand from ZelaaPayAE, Bittrex published a explain on his Twitter account that not all tokens listed pass the compliance checks.
“At Bittrex Global, we take compliance very seriously. Every coin or token listed on our exchange goes through several rounds of verification before it is made available to the community. Not all projects pass our strict compliance checks. “
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According to Cryptoslate