DigitalX Crypto Advisory Firm Requested For Mediation For ICO Sale Gone Wrong

Crypto Advisory Firm DigitalX Requested For Mediation On ICO Gone Wrong

DigitalX, a publicly listed blockchain advisory firm has announced that it has been requested for mediation from the Federal Court of Australia in relation to its advisory role to an ICO.

Initially, the advisory firm was served with an Originating Application and Statement of Claim by a group of investors who backed the ICO in question. The former crypto mining firm said the investor group had claimed USD 1,833,077 in damages.

No Wrong Doing

DigitalX had denied it had anything to do with the disgruntled investors’ issue when it was served with the lawsuit in September and had said it had “strong grounds to defend any claims bought forward by these applicants”.

Under Australian law, the company was obligated to disclose the lawsuit. Official statement from the firm was “to vigorously defend this matter and protect the reputation of the Company.” Following the disclosure, the publically traded firm’s stock fell sharply by 12%.

The company has updated the legal matter in it Q3 quarterly report and revealed that it has now been approached with a request for mediation from the plaintiffs. DigitalX further said it will “Continue to vigorously defend their claims which we believe have not basis.”

The ICO has so far not been identified.

From Mining To Advisory

Previously branded as Digital CC, the advisory firm focused on crypto mining, especially Bitcoin. The company shifted from crypto mining to blockchain consultancy and development in 2015. The shift in core services came after it developed a falling out with its outsourcer, Mintsy.

The company has also launched a digital payment app called AirPocket, through which users can remit money to more than a dozen countries through the use of blockchain technology. Latin America make for the majority of the supported countries.

The Australian Securities Exchange listed firm, in its quarterly report informed that it has more than 430 Bitcoin, alt coins worth USD 166,122 and cash reserves of USD 5.4 million