Salerno Law to Review Potential Claim against BPS Financial Limited and its associates (Qoin) on behalf of Affected Parties

Overview

Salerno Law have a specialist cryptocurrency law department, headed up by Krish Gosai. This dedicated team specialise in all aspects of cryptocurrency law and Salerno Law were recently awarded the honour of the number one cryptocurrency law firm in Australia.

 

Salerno Law proposes to advise holders of the utility token, Qoin, in connection with causes of action that may be available to them against the issuer of that token, BPS Financial Limited (BPS), and its associates. After speaking with parties that currently hold Qoin, Salerno Law understands that holders of the token have experienced significant difficulty in selling Qoin on the BTX Exchange, redeeming the token at merchants or converting it into fiat currency.

 

According to its website, BPS claims to have over 35,000 merchants signed up in its ecosystem, which provides investors and holders of Qoin with the ability to pay for real goods and services using the token. BPS also claims that the token can be traded as a digital currency operated by Block Trade Exchange Limited (BTX Exchange), which upon review, is a related body corporate of BPS with common directors and shareholders. Qoin has entered into an exclusive trading arrangement with BTX Exchange which, according to its terms, limits users to one daily transaction with a $125 sell limit per day per person, subject to buyer demand.

 

It has been alleged by holders and merchants that they are either unable to accept Qoin payments or exchange the token for fiat currency due to the terms of BTX Exchange, leaving them with a token of no utility. For merchants, this is alleged to have caused a significant loss in revenue.

What is the basis of the claim?

 

Salerno Law will review whether BPS and/or its associates breached or contravened their respective statutory or common law obligations owed to holders of Qoin and other affected parties, including participating merchants. This includes potential contraventions of the Corporations Act 2001 (Cth), the Australian Securities and Investment Commission Act 2001 (Cth) and the Australian Consumer Law (contained within the Competition and Consumer Act 2010 (Cth)). These potential contraventions may include, but are not limited to:

  • engaging in misleading and deceptive conduct;

  • making false or misleading representations;

  • pyramid selling of financial products;

  • failure to comply with financial services obligations; and

  • failure to comply with consumer guarantees.

If Salerno Law considers that any breaches or contraventions are capable of being substantiated, it may be recommended that a class action be commenced against the offending parties without delay.

Discussions with Affected Parties

Salerno Law is looking to hear from investors, holders and merchants in the Qoin ecosystem that have incurred loss as a consequence of being unable to use or redeem the Qoin token as intended. If you have been affected, please enter your information below so that we can discuss your current circumstances and advise how we may be able to assist.

If you have any questions in relation to this matter, please contact Salerno Law at

classaction@salernolaw.com.au or on (07) 5575 8011. 

Important Note

Neither Salerno Law nor its representatives are in any way stating (expressly or impliedly) that BPS Financial Limited or its associates have engaged in any conduct that would constitute a breach or contravention of the obligations that they may owe to a third party or any other misconduct generally. Salerno Law has received a number of enquiries from affected parties and proposes to review their circumstances to determine whether those parties may have any causes of action available to them.