Will Users Recieve Their Funds Back?
As previously reported, Israeli cryptocurrency wallet and custody services BT360 has seemingly disappeared. Their website, social media channels as well as their wallet are no longer functioning. This left many clients without access to their funds, wondering if they fell victim to a scam.
Some have taken action regarding BT360, however. As per Globes, Israeli cryptocurrency exchange and trading platform Bit2C have filed a lawsuit against BT360. The owner of BT360 Eyal Sade has been named in the lawsuit as well as the previous CEO Erez Fishler and another individual Elior Maman.
BT360's Legal Dispute
In the lawsuit Bit2C have claimed that BT360 have violated previous agreements with Bit2C. Both Bit2C and BT360 were supposed to have a collaboration that on paper was valued at $10 million according to Bit2C's CEO Eli Bergerano. The lawsuit stands at 1.8 million shekels, the rough equivalent of $500,000.
Bit2C's CEO claims that the first agreement violated was regarding a loan in Bitcoin. Bit2C agreed to give BT360 a loan of 20 Bitcoins at a 1.35% monthly interest rate. After 3 months BT360 allegedly stopped paying interest and didn't return the loan.
The second agreement violated was when Bit2C's CEO took a $250,000 loan from Elior Maman, the CEO of ATM holdings. As part of their agreement, there was no interest rate, but 20 more Bitcoins were taken as collateral. After 4 months, when the loan was repaid in full, Bit2C's CEO, Bergerano did not receive his collateral in return.
Currently some of BT360's owner Eyal Sade's assets have been repossessed based on the sum of the lawsuit. This includes various real estate holdings in Israel, bank accounts as well as Toyota Camry Executive model.
Unfortunately, many others who have lost funds with BT360 have yet to receive compensation.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado