Karma (KRM) is started a lawsuit process against HitBTC

Karma.red (KRM) is a decentralized cross-border p2p loans ecosystem.

Karma Group is started a lawsuit process against crypto ecxhange HitBTC through the Hong Kong court and financial regulator. The exchange received 527,01 ETH from Karma for the listing services, but has not fulfilled it’s obligations.

On May 30 Karma lawyers started litigation with HitBTC. The following letter before action was sent to the official email addresses and official Hong Kong office address. The exchange didn’t provided any updates on listing deadlines and haven’t refunded the 527,01 ETH until May 29.

It’s been 60 days since March 30, 2018, when Karma paid 527,01 Ether to the HitBTC Ethereum address sent by Tim Novak.

There were 3 items which were requested by Karma in that service order:

  • Blockchain implementation.
  • Listing of two trading pairs (BTC and ETH) + Re-tweet
  • Additional trading pair (USDT).

At first, HitBTC representatives agreed to complete all the obligations until April 20, 2018. Karma provided HitBTC team with all the information about the BTS-based blockchain (non ERC-20). On March 29 Karma team notified HitBTC once more that KRM is not an ERC-20 token.

Karma team have been regularly requesting HitBTC for the status updates during 1 – 20 April, and HitBTC representatives constantly reported, that April 20 deadline would be completed. Karma team was constantly offering any technical help, but HitBTC rejected these proposals.

When HitBTC have failed to deliver the work by April 20, they’ve ceased all communication for 5 days, and then tried to tell Karma team that Karma hadn’t notified HitBTC developers about that KRM is not an ERC-20 token.

Since then the exchange has’t provided a new completion date, only vague estimates such as “should be 10 days”.

Karma team consider these actions made by HitBTC to be fraudulent. Therefore, Karma lawyers are preparing to initiate legal action against HitBTC and report to the Hong Kong financial regulator.

Karma together with Hong Kong financial regulator is going to examine the legitimacy of HitBTC. The case will be pursued until justice prevails.

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