- Bittrex user filed a lawsuit against the exchange for withholding funds
- Apparently, she didn’t provide information about her funds
According to a recent report released by The Block, a New York resident has just filed a new lawsuit against the popular cryptocurrency exchange Bittrex for withholding funds. The plaintiff claims that he deposited $120,000 on her Bittrex account in August 2018 and that the exchange didn’t allow to release the funds until November of this year.
Bittrex Allegedly WIthholds User’s Funds
According to the report, the user claims that the exchange extorted her by withholding her funds unless she signed an agreement giving up her rights to sue the firm. At the same time, Bittrex claims that these allegations are not true and that she couldn’t provide information regarding the source of the funds, which is required by New York state and the U.S. federal law.
The report explains that the first page of the terms specifies that the plaintiff registered on the cryptocurrency exchange by agreeing on the platform’s terms of service that include an arbitration clause. Thus clause governs the resolution of certain disputes and waives any right to trial by jury or to participate in a class action.
According to the author of the article, the plaintiff does not have enough reasons to be optimistic. About it, the author Stephen D. Palley commented:
“One imagines an uphill battle convincing an arbitrator that (if we assume Bittrex’s argument is correct) that requiring documentation of source of funds is somehow unlawful, if required by state and federal law.”
The cryptocurrency exchange Bitsane has disappeared leaving 246,000 users without their funds. During the last few months, the platform didn’t allow users to access their funds and withdraw them from the exchange. Ultimately, the platform closed its operations, deleted its social media network accounts and users are still waiting for their funds to be released.