- Qoin was founded by Raj Pathak and Tony Weise in 2020.
- ASIC claims the firm misrepresented the regulatory approval of Qoin Facility in Australia.
Authorities in Australia have filed suit against Qoin’s operators, claiming the cryptocurrency’s backers spread false information. Qoin was founded by Raj Pathak and Tony Weise in 2020 and is managed by BPS Financial.
The Australian Securities and Investments Commission (ASIC) announced that it has initiated civil penalty proceedings against Qoin in the Federal Court of Australia. Claiming that more than 79,000 consumers may have been misled into believing that Qoin complied with financial services laws when, in fact, ASIC claims that Qoin did not.
Multiple Claims of Deception by ASIC
Moreover, Qoin may be used at around 38,000 different stores, as stated on the official website. According to the website, the token’s value fluctuates based on its demand at these retailers and its trading volume on the Block Trade Exchange (BTX).
Furthermore, graphs on the Qoin website show that the value of the cryptocurrency has increased consistently. From its original issue price of AU $0.25 ($0.16) in April 2020 to its current value of AU $10,806 ($6,836). However, ASIC notes that BPS administers the BTX Exchange. And contends that BPS has been gradually restricting the ability of Australians to convert their Qoin tokens into Australian dollars.
Accordingly, the claim that BPS made “false, misleading or deceptive representations” when it claimed that Qoin token-holders would be able to trade their tokens for other cryptocurrencies or cash via third-party exchanges is crucial to the lawsuit.
Moreover, ASIC further claims the firm misrepresented the growth of the scheme’s merchant participation. And the regulatory approval of the Qoin Facility in Australia.
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