Japanese Class Action Suit Demands $12 Mln Damage from Gambling Cryptocurrency Coin

  • Yuri Molchan
    📰 News

    Withcoin, a token for casinos, is accused of promoting and selling coins deceiving investors


Japanese Class Action Suit Demands $12 Mln Damage from Gambling Cryptocurrency Coin

The HitBTC exchange listed Withcoin in May and back in April the Internet was flooded with a promotional video that, allegedly, was misleading investors and providing false information for them. The video spread virally on the Internet, luring customers and promising great profits after listing on HitBTC.

The coin’s propaganda

The Withcoin was promoted as part of the “Final ICO” project with a slogan, promising the coin to potentially rise a thousand times.

When the pre-ICO took off in January 2018, the coin was selling at the price of 0.5 Yen but you could only buy it in chunks of 10 mln. So investors, apparently, bought it joining in groups.

👉MUST READ Binance Coin Price Prediction - How Far Can BNB Grow?
Binance Coin Price Prediction - How Far Can BNB Grow?

The coin’s creator, Koichi Matsuyama, did not disclose any company name, calling himself an IT-engineer and claiming to have created Withcoin himself. First he claimed that the token was planned to be listed on Binance but later he changed that to HitBTC.

Besides, he is said to have promised that his Withcoin would be suitable for exchange at Okada Manila, a Philippines-based casino network. However, this company denied any connection with any digital tokens on its website.

Big fall

After Withcoin was added to the list of assets on HitBTC, its price suddenly dropped to 1/10 of the one it was going away at the ICO. The investors are facing great losses.

👉MUST READ How Long Does it Take to Mine a Bitcoin?
How Long Does it Take to Mine a Bitcoin?

Enjin crowdfunding class action site says on its website that sales contract for this coin was initially invalid. Currently, the investors can get their money back in Japanese yen at the price that was valid when their Withcoins were sold.

Going even lower

After a couple weeks after the so-called crypto asset plummeted down to 0.139 Yen. In June over 400 deceived investors joined the crowdfunding class action project Enjin and claimed over $12 mln of damages.

However, now it seems hard to confirm that Matsuyama was initially planning to trick investors. Anyway, it is now can be proved that the management of the Withcoin team provided misleading explanations to their customers.

YouTube is also accused of spreading the viral advert video advertising Withcoin and inviting people to invest.

👉MUST READ Five Best Bitcoin Mining Hardware 2018
Five Best Bitcoin Mining Hardware 2018

Cover image via u.today
Join our Telegram channel to get news even faster!
👓 Recommended articles