Bitpoint Japan Sued By Its Taiwanese Subsidiary Bitpoint Taiwan For Overbilling

Bitpoint Taiwan is suing its parent exchange for 1 billion yen ($9.4 million) damages in what it claims was overbilling by the parent exchange following a hack.

Cointelegraph reports that Bitpoint Taiwan found out that the amount of funds it got from its local customers were less by 500 million yen ($4.7 million) as a result of overbilling by its parent company Bitpoint Japan.

In a report published by a Japanese based news outlet, Mainichi, the Bitpoint Taiwan realized the low amount of funds when it was perusing through past billings by Bitpoint Japan after the company suffered a major hack in July 2019. As per the Mainichi’s report Bitpoint Japan suffered a loss of 3.02 billion yen ($28 million) plus an additional 250 million yen ($2.3 million) from international based exchange platforms that utilize its trading system comprising of Bitpoint Taiwan.

In a lawsuit, Bitpoint Taiwan says that it sends the funds collected from its local clients to Bitpoint Japan as per the bills coming from the parent company. Bitpoint Taiwan noted:

“It is clear that (Bitpoint Japan) had billed us based on erroneous numbers.”

Bitpoint Taiwan legal counsel, Hirotaro Kato, said that the aim of the lawsuit is to protect its local customers’ funds, adding that the case could easily become an international issue as other platforms might file similar suits.

In this case, the Taiwanese based crypto exchange said it was ready to file a lawsuit with the Tokyo District Court, for a total loss damage that will include the loss it suffered after the hack.

Asked about the lawsuit, Bitpoint Japan said that they were not conversant with the lawsuit and that officials from the two firms were negotiating on the issue.

According to Mainichi, Bitpoint Japan on July 12 announced that it was halting all its services following a loss of $32 million after a hack that involved major cryptos like Bitcoin and XRP. the outlet reports that the funds stolen from Japanese customers accounted for 13% of the entire amount on Bitpoint system and affected almost 50,000 or 50% of the entire clientele. The exchange reportedly opened up parts of its services this month.