2nd November 2021:
A law firm based in Queensland, Australia named Salerno Law is going to sue BPS Financial. The lawsuit is on the claim of “engaging in misleading and deceptive conduct, pyramid selling of financial products, and failing to comply with financial services regulations.” It is seeking $100 million in damages.
QOIN token is a token that is supplied by BPS Financial Limited. It is designed to be a digital currency that QOIN will accept for goods and services.
Salerno Law’s Allegations:
Salerno Law is coming down on the firm as QOIN holders have stated the token is of n0 value nor utility. Holders and merchants are unable to accept QOIN or exchange them back to fiat currency on the BTX exchange.
QOIN is only available on the BTX exchange and no other decentralised exchange lists it. Furthermore, it doesn’t allow users to sell more than $125 worth of the token daily. On the contrary, users can buy QOIN worth between $100-$10,000. Despite BTX being registered with the Australian Securities and Investments Commission (ASIC), these terms seem rather suspicious. But, to make matters worse, BPS financial owns BTX Exchange. There are a lot of doubts on conflict of interest and transparency issues due to this confusion.
Hence QOIN is being slammed as a pyramid scheme. And not just by investors but by the whole community. The industry association, Blockchain Australia, has even expelled QOIN’s membership amid the ongoing lawsuits.
QOIN’s public response:
QOIN had responded to the allegations saying they are “baseless.” On top of which, they updated their legal part of the website to address some concerns.
However, this has not provided any comfort nor reassurance to QOIN hodlers or investors.
One user posted – “Qoin is a TOTAL joke. Stay well clear of this business and it’s dirty dodgy deals”.
Another user says the company is not operating in line with its vision and mission statement.
QOIN hodlers have no option but let the lawsuit play out.