Lawsuit against Kraken

Plaintiffs from 3 countries sued due to the loss of funds
06 July 2017   3264

The popular currency exchange Kraken has faced a collective lawsuit of traders against it as a result of recent failures in work.

Class Action Complaint by CoinDesk on Scribd

At 8th and 9th of May, popular cryptocurrency exchanges Poloniex and Kraken faced technical issues, which, according to the users, led to a financial loses. Because of the incident, both sites became the object of harsh criticism. Also after a while there was information that a class action suit could be filed against Poloniex.

The same measures were not applied to Kraken, although the law firm Berns Weiss LLP, which specializes in consumer and investor protection, took up the cause of the California stock exchange.

Now it became known that a collective claim against Payward Inc, which acts on behalf of Kraken, was filed by five investors. The exchange is accused of inaction, breach of contract and unfair enrichment.

Claimants are residents of the United States, Israel and the United Kingdom, the total amount of claims is 3,414.078 ETH (about $ 329,000 at the rate of $ 96.32 at that time). To date, this amount would have been more than $ 900,000. The applicants are represented by the law firm Silver Law Group from Florida.

Kraken's official announcement about technical issues was posted on Reddit. It says that an internal investigation "did not find any evidence of a coordinated attack or market manipulation" and that its internal systems had operated normally. It also added that "cannot compensate traders for the outcome of naturally occurring events in the market, nor losses due to unavoidable DDoS attacks."

AION to Unveil Future Plans

Foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year
06 December 2018   174

The Aion Foundation, which is responsible for the development of the protocol of the same name and collected $ 23 million in Bitcoin and Ethereum on ICO in October last year, published a report in which it shared information about its financial operations. The report was prepared with the support of Deloitte, however, it cannot formally be considered an audit.

According to the Aion Foundation CEO Matthew Spoke, the foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year. Having spent $ 10 million on launching its blockchain platform and opening offices in Canada, China and Barbados, the fund had assets of $ 14 million as of October 31 of this year, $ 5.8 million of which was placed in Fiat.

We’ve liquidated a decent amount of our bitcoin and eth that we raised as proceeds to make sure that we are stable in this type of period. As we continue to spend in our operations we’ll end up liquidating more bitcoin and eth over the course of the next few months.

Matt Spoke

CEO, Aion Foundation

The Aion protocol has already attracted active users, including the video game start-up ClanPlay, but Spoke claims that his company will continue to rely on hard currency.

The foundation has roughly 18 months of runway, Spock estimates, while developing his system to a level at which it can compete with centralized counterparts, such as Amazon Web Services, will take about five years. Aion expects to launch its first Java-based virtual  machine, thanks to which developers can use decentralized tools, by the second quarter of next year.

Spoke suggests that at this time his company will have to attract additional funding from cryptocurrency funds and accredited investors in exchange for their own tokens. His goal is to prevent the reduction of the team, which currently includes 61 people, and the operation of the Ethereum model of ConsenSys, a company sponsoring projects in its own ecosystem.

In the future, Aion intends to publish such reports on a quarterly basis and transfer data to the Messari network in order to increase the confidence of its tokens holders.