DigitalX Ltd, a blockchain based solutions provider, and ICO adviser gave an update on October 30 regarding the legal proceedings that the firm has to deal in Australia.
In September this year, DigitalX confirmed a legal claim regarding Initial Coin Offering (ICO). DigitalX said that it was served with an Originating Application and Statement of Claim where DigitalX served as an advisor.
DigitalX stated “While the DigitalX and its legal advisors continue to review and examine the claims made, the company denies any claim of wrongdoing, and for reasons that will become apparent as this matter progresses, believes that it has strong grounds to defend any claims brought forward by these applicants. As such, the company intends to vigorously defend this matter and protect the reputation of the company.”
The claim is in the Federal Court of Australia with the group who made the investment in the ICO who were seeking $1,833,077 USD in damages.
DigitalX further added that they have received a request for mediation from third parties and they were defending the claims which according to DigitalX have no valid base. DigitalX promised to update the market with any new information whenever it will be available.
Regulators on Cryptocurrency and ICOs
The authorities in Australia have chosen a caution stance against ICOs and cryptocurrencies. John Price, the commissioner of Australian Securities and Investments Commission (ASIC), in the month of April said that the regulators are determined to see the innovative fintech of the country, he further stressed that the ASIC must focus on both, Consumers and facilitating innovation across the financial services market.
Formerly, DigitalX was a crypto mining company which focused on BTC. As per their reports, they held around 431.42 BTCs which are valued around $2.8 million. They also had $166,122 in Altcoin trade. Not just this but the company also revealed cash reserves of around 5.4 million USD.