Australian Company Launches $100 Million Crowd Business With Dodgy QOIN Token – News Couple
CRYPTO NEWS

Australian Company Launches $100 Million Crowd Business With Dodgy QOIN Token

An issuer of a controversial cryptocurrency that can only be sold in batches of $125 a day on a single exchange is facing opposition from an Australian law firm.

Queensland-based law firm Salerno Law plans to file a lawsuit accusing BPS Financial Limited – the company behind the QOIN code – of engaging in misleading and deceptive behavior, pyramid selling of financial products, and non-compliance with financial services regulations. The lawsuit will seek $100 million in damages.

Salerno Law, which specializes in cryptocurrency disputes, has begun collecting expressions of interest from investors and traders who have incurred losses as a result of the seemingly arbitrary restrictions placed on QOIN sellers last week.

QOIN tokens are issued on the company’s Qoin blockchain. As such, QOIN is not supported by decentralized exchanges, and can only be exchanged using the “Block Trade Exchange” (BTX Exchange) – which prevents users from selling more than $125 worth of token per day. However, users can make QOIN purchases between $100 and $10,000.

BTX is registered with the Australian Securities and Investments Commission (ASIC).

BTX Exchange, BPS and Qoin are all controlled by the same two men, Tony Wiese and Raj Pathak. Pathak and Wiese are also joint administrators of Bartercard, a barter system that allows companies to exchange goods and services using a special credit system called “trade dollars.”

Salerno Law says it has spoken to several Qoin holders, who said they have had great difficulty selling or withdrawing the token on the BTX exchange and redeeming the token at merchants.

“The owners and merchants have claimed that they are either unable to accept Qoin payments or exchange the token for fiat currency due to the terms of the BTX Exchange, leaving them with a useless token.”

Quinn denies the allegations, calling them “baseless” in a statement posted on her website on October 28.

Public reviews provided by Qoin users also provide harsh ratings for the project.

“Qoin is a total joke. Stay away from this company and from dirty scams,” one user posted on the Product Review.

“0 is my rating. This is not, and I will repeat it again, and it is not an investment. It is a closed-to-company swap system. Once you have your money in, the maximum you can withdraw is currently $125 if you can,” added Michelle from NSW.

Read more: Blockchain Australia removes crypto project retailer Qoin

Salerno’s suit wasn’t the first time Qoin has come under criticism, as the local industry association Blockchain Australia expelled Qoin’s membership and requested that its name and logo be removed from marketing promotions in February of this year amid accusations of its involvement in pyramid selling.

Blockchain Australia wrote at the time: “The former member has been asked to stop using the Blockchain Australia logo and name in connection with their business or promotional activities.”