Salerno Law, a law firm based in Queensland, Australia plans to file a lawsuit against BPS Financial Limited. Salerno accuses BPS Financial, the firm behind the QOIN token, of misleading and deceptive conduct. The lawsuit is seeking damages of $100 Million for pyramid selling and non-compliance with regulations for financial services.
Salerno Law specializes in crypto disputes. Salerno collected complaints from investors and traders who had incurred losses. The losses accrued due to the arbitrary limits placed on QOIN sellers.
The problem with QOIN
BPS issues the QOIN tokens on the QOIN blockchain. QOIN is not supported by decentralized exchanges. They can be exchanged only using BTX. This implies that more than $125 worth of tokens cannot be sold in a single day. However, purchases of value between $100 and $10,00 can be made.
The allegations against QOIN
Salerno Law alleges that people holding QOIN have said that it is extremely difficult to sell or withdraw the QOIN token on the BTX exchange. It was also difficult to redeem the tokens with merchants.
The terms of the BTX exchange also make it difficult to accept QOIN tokens. Exchanging the token for fiat currency is also difficult. This essentially leaves the holders with a token that has no utility.
QOIN dismissed these allegations as being baseless. However, public reviews of QOIN’s users are also critical of the tokens.
Even before Salerno Law, QOIN had crossed swords with local industry. Blockchain Australia has expelled QOIN’s membership. QOIN had been told to remove its name and promotions. QOIN can not use Blockchain Australia’s logo and name for any of its promotional activities.
