Publicly-Listed Aussie Crypto Firm’s Shares Slump after $1.8 Million ICO Legal Action

DigitalX, an Australian blockchain and crypto advisory firm listed on the Australian Securities Exchange (ASX) has seen its shares slide nearly 12 percent on the day on revelations of a $1.8 million federal court claim.

In an obligatory disclosure under ASX guidelines, DigitalX today revealed it was served with an Originating Application and Statement of Claim in the Federal Court of Australia by a group of stakeholders involved in an initial coin offering (ICO) which DigitalX served in an advisory capacity.

The claim from the aggrieved group, who made an investment in the coin offering, stands at a total of USD $1,833,077 plus damages.

For its part, DigitalX denied any claim of wrongdoing and says it will – along with its legal advisors – continue to review and examine the claims made against it.

While few details are known about the ICO presently, Australian publication Business News is reporting that the “ICO was not local”. DigitalX is a Perth-based firm with offices in Sydney and New York.

Shares in the firm, one of the earliest publicly-listed cryptocurrency companies in the world, slid from AUD $0.09 to a low of AUD $0.081, a near 12% slide following the public disclosure.

The firm said it “has strong grounds to defend any claims bought forward by these applicants,” adding:

“As such, the Company intends to vigorously defend this matter and protect the reputation of the Company.”

Formerly Digital CC, a cryptocurrency mining firm with a specific focus on bitcoin, the company rebranded into Digital CC in late 2015 with a pivot from bitcoin mining to blockchain development and consultancy services. DigitalX launched a payments app for remittances to 14 countries, a majority of them in Latin America, using blockchain technology.

Featured image from Shutterstock.

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