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Gatehub and Bitstamp are facing lawsuits from a Canadian investor over $4.9 million in alleged losses resulting from misleading info.
Canadian cryptocurrency investor, Salim Satir, has filed a lawsuit against cryptocurrency exchanges, Gatehub and Bitstamp, with the High Court of Justice of England and Wales over $4.9 million in purported losses.
The plaintiff claims that the losses resulted from misleading statements on Gatehubâs website purporting to detail its Bitcoin (BTC) to Ripple (XRP) trading function, in addition to the wrongful retention of 872 Bitcoin Cash (BCH) amid the August 2017 Bitcoin fork.
Investor accidentally purchases âBitcoin IOUsâ from Gatehub
Satir alleges that information provided on Gatehubâs website mislead him as to âthe operation and effect of the Bitcoin/Ripple exchange functionâ on the platform, resulting in $2.5 million in losses.
While Satir believed he was making a spot purchase of BTC for XRP, he instead received âBitcoin IOUsâ that would be held by Bitstamp.
Satir also claims that when he attempted to transfer 872 BTC from his account in December 2017 and January 2018 he was blocked from doing so, accusing Gatehub of hiding a technical fault from its customers.
As a consequence of the delay, each of Satirâs Bitcoinâs value lost $2,992 â resulting in $2.5 million in losses.
Satir claims Gatehub owes him 872 BCH
Satir also alleges that Gatehub failed to deliver 872 Bitcoin Cash that corresponded to his Bitcoin (BTC) holdings on the platform as of the August 2017 Bitcoin hard fork that spawned BCH, accusing the exchange of retaining the coins âfor its own benefit.â
The suit seeks an additional $2.4M in damages resulting from Gatehubâs failure to deliver the 872 BCH âof which he was duly entitled,â bringing the total value of the suit to $4.9 million.
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