Bitstamp, Gatehub exchanges sued over millions in missing funds
A Canadian cryptocurrency trader believes Gatehub ran off with his funds
A Canadian investor claims to have lost over $4.9 million in cryptocurrency due to misleading information given by two cryptocurrency exchanges. Salim Satis has filed a lawsuit against both Gatehub and Bitstamp in the High Court of Justice of England and Wales, asserting that these losses came as a result of the misleading statement posted on Gatehub’s website regarding the details of its Bitcoin (BTC) to Ripple (XRP) trading function. On top of that, he stated that the exchange retained 872 Bitcoin Cash (BCH) when the August 2017 Bitcoin fork happened.
Satir alleges that the information that was provided on the exchange’s website misled him as to “the operation and effect of the Bitcoin/Ripple exchange function” on the platform, which made him lose $2.5 million. While he was sure to be making a spot purchase of BTC for XRP, what he really was doing was to purchase “Bitcoin IOUs,” which would be held by Bitstamp. In addition, Satir stated that at the moment he tried to make a transfer for this 872 BTC from his account back in December 2017 and January 2018, he was blocked and could not do it. He blamed it on Gatehub for hiding a technical fault from users. Due to that technical problem and he not being able to transfer the BTC, he suffered losses of $2.5 million when the digital currency’s value dropped $2,992.
In his lawsuit, Satir is also seeking another $2.4 million in damages that came from Gatehub’s failure to deliver his 872 BCH “of which he was fully entitled. When BCH split from BTC, he was entitled to the equivalent number of BCH tokens that he held in BTC, which he asserts he never received. That amount, in dollars, is worth around $2.4 million.