Bittrex is sued by a user for allegedly witholding funds

01 Jul, 2019
by Fifi Arisandi
Bittrex is sued by a user for allegedly witholding funds

Crypto exchange Bittrex is being sued by one of their users for allegedly withholding funds.

The New York resident claimed to have deposited $120,000 to her Bittrex account in August 2018, which she couldn’t access until November last year.

She accused Bittrex for attempting to “extort her by withholding the funds she had in her account”, unless she signed an agreement giving up her rights to bring the case to court.

On the other hand, Bittrex claimed that the plaintiff’s accusations are not true and that she failed to provide evidence of the source of the funds, which is mandatory according to the New York state and US federal law.

The exchange reminded that the plaintiff agreed to their terms of service, which includes an arbitration clause when she registered on the platform.

Bittrex is also reported to compel arbitration or to transfer the case to federal court in Seatlle, which is granted by the court.

The court’s analysis towards the arbitration clause mentioned by the defendant is that “when [Plaintiff] originally signed up for her user account, she checked a box to indicated that she accepted the Terms of Service, including the mandatory arbitration clause”, also whether or not the current dispute is covered by the arbitrator is subject to the arbitrator’s decision.

“One imagines an uphill battle convincing an arbitrator that (if we assume Bittrex’s argument is correct) that requiring documentation of source of funds is somehow unlawful, if required by state and federal law,” said The Block on how the “future” of the legal battle would look like.

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Read more about: Bittrex New York


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