Bodybuilder Who Lost Millions with XRP Trade Starts Settlement Talks with Exchanges

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Thu, 10/29/2020 - 17:43
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Alex Dovbnya
The Canadian bodybuilder who sued GateHub and Bitstamp over his botched XRP trade has started resolution talks
Bodybuilder Who Lost Millions with XRP Trade Starts Settlement Talks with Exchanges
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Bodybuilder turned crypto trader Salim Satir — who sued Bitstamp and GateHub over botched trades back in April — has started settlement talks with the two cryptocurrency exchanges, according to an Oct. 29 report by legal news service Law360.  

In his lawsuit, the plaintiff argued that he had lost $2.4 mln after attempting to exchange XRP, the fourth largest cryptocurrency, for Bitcoin on London-based GateHub in late 2017.  

While detailing the incident, Satir claimed that he had received Bitcoin IOUs issued by Luxemburg-headquartered Bitstamp in lieu of the real thing. He accused GateHub of misleading users about its trading functionality.

The “IOU” acronym stands for “I owe you.” These are redeemable tokens that are issued on the XRP Ledger. Whenever someone sends BTC between Bitstamp and Ripple, they receive Bitcoin IOUs that can be then exchanged for the underlying asset.  

Satir wasn’t able to withdraw 872 BTC from GateHub, losing millions due to volatility.    

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In addition, the aggrieved Canadian national also accused GateHub of withholding the same amount of Bitcoin Cash (BCH) from him after the hard fork in August 2017.    

Andrew Hochhauser, a deputy judge of the High Court's chancery division, has ruled that the parties involved can in participate in alternative dispute resolution in his Oct. 27 order.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.