Karma Group filed legal action against Cryptoexchange HitBTC
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Karma Group filed legal action against Cryptoexchange HitBTC

Karma Group has filed a legal action against crypto exchange HitBTC through Hong-Kong court and financial regulator.

Karma Group is a blockchain based loan company. HitBTC is among the top 10 Crypto exchanges. According to data on CoinMarketCap, it is the sixth large crypto exchange in the globe in terms of the trading volumes.

The exchange stands accused of having taken 527.01 ETH from Karma for listing services but has not fulfilled its obligations.

As it happened :

On 30th March 2018, Karma paid 527.01 ETH to HitBTC from the official invoice #040-03-18 sent by Tim Novak.

The services requested by Karma in that service order were:

  1. Blockchain implementation
  2. Listing of two trading pairs ( BTC and ETH ) + Re-tweet
  3. Additional trading pair ( USDT )

Initially, HitBTC representatives agreed to complete all the obligations by April 20th, 2018. Also, All information about the BTS-based blockchain (non REC-20 ) was provided to HitBTC. On 29th March 2018, they were again notified about KRM being a non ERC-20 token.

Regular updates were requested by the Karma team from 1st April to 20th April but HitBTC representatives repeatedly replied that it would be completed by the 20th April deadline.

HitBTC ceased all communications for 5 days with Karma team, post-deadline. Further, the explanation was given that they were not informed about the fact that KRM is not an ERC-20 token.

Karma further requested for refund of the payment made, but no proper reply came from the exchange company representatives.

Considering this as a fraud, Karma has turned to court for a solution.

Karma’s CEO, George Goognin said,

“The Karma team stands for transparency and a high level of business ethics. The fathers of the crypto economy were standing for freedom, but 100% freedom always comes with 100% responsibility. We’re sure that the basic principles violation, especially by the big market players, is unacceptable. That’s why we decided to create this international law case.”

Considering this as a fraudulent Karma has turned to court for a solution.

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