Steem community sues Bittrex crypto exchange

Steem community sues Bittrex crypto exchange
CONTENT

  • Steem tokens worth $ 5 million were withdrawn from 65 accounts in May 2020

  • Community members file a lawsuit against Bittrex for $ 16 million

  • Latest lawsuit takes the war between Steem and Tron to the next level

Steem community sues Bittrex crypto exchange

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In May, $ 5 million was transferred from the Steem blockchain to the Bittrex crypto exchange. Now affected Steem owners want their money back

Members of the Steem community have initiated a lawsuit against Bittrex, which unexpectedly received more than $ 5 million in cryptocurrency that was allegedly stolen from the community. Plaintiffs ask the exchange to pay them $ 16 million.

War is like war

It marks the final stage in a long-running epic between the Steem community and Tron Foundation founder Justin Sun, who bought Steemit Inc. in February, hoping to incorporate this social network into the Tron ecosystem. Eventually, however, a battle over the blockchain erupted between the original Steem witnesses (the witness is chosen to manage the blockchain) and the new witnesses appointed by Sun.

Steem community sues Bittrex crypto exchange

On May 20, new witnesses transferred $ 5 million of Steem tokens from 65 accounts to another account. However, an unknown person who had access to the account tried to save the money by sending it to Bittrex and asking for it back to the original owners. However, Bittrex refused to do so, sparking outrage among the victims..

Timeline of claims

The lawsuit was filed on May 8, 2020 in the District Court for the Western District of Virginia by Daniel Notstein, Daniel Hensley and others who lost $ 3 million – 60% of the seized money.

“Plaintiffs demand to oblige Bittrex, Inc. immediately transfer Steem tokens to the specified accounts, “the document says.

Bittrex responded to the complaint on July 15. The crypto exchange admitted that it received the Steem tokens, but dismissed many claims, asking to drop the claim. One of the arguments boils down to the fact that the damage was not caused by the exchange itself, and, accordingly, it should not be responsible for this money.

Steem community sues Bittrex crypto exchange

Members of the Steem community filed a statement yesterday claiming that Bittrex has no reason to believe that an unknown party could have stolen the funds. The plaintiffs noted that Bittrex received a message while transferring the money:

“These are funds stolen by Steem witnesses using HF23 on May 20, 2020. Please return them to their original owners before changing the source code on the blockchain 🙂 “.

Bittrex also raised concerns about paying cryptocurrency to court. The plaintiffs said the exchange could create a sub-account within the Bittrex account and store money there.

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