CAVirtex, Canada’s largest and oldest Bitcoin online exchange, is facing a potential class action lawsuit to the tune of $884,880 CAD. The alleged losses were incurred by the lawsuit-bringers after the company offered 10% of its shares for sale on the cryptocurrency-based asset exchange, Havelock Investments then stopped listing the stock by the end of 2013.
Also read: Havelock Investments: Neo and Bee Story
CAVirtex Class Action Lawsuit
A total of 10,000 shares were sold on March 23, 2013 and continued to be traded until the end of 2013. At that time, CAVirtex announced that they would no longer be listing stock from Havelock and that they would offer to buy back their shares at an “adjusted exit price” of $30 CAD a share. At the time of the announcement, the stock was trading around $120 CAD a share.
Not only was the exit price unfair but the process for selling the shares was made complex, and many investors were left stock and as a result of this became permanent shareholders in CAVirtex. The class-action lawsuit against CAVirtex is based on the market cap at the time of the incident and takes into account the adjusted exit price offered. Those who feel they have been wronged by CAVirtex have until November 1st to submit a claim by contacting [email protected] with your name, phone number, number of shares you held, and any other relevant information. After November 1st, more details will be revealed; including, the name of the firm behind this.
This is the second time CaVirtex has been in the news this month. On October 6th, they disabled Bitcoin withdraws citing an increase in volume that lead their “hot wallet running dry.” The likelihood of CAVirtex’s actions being related to recent SEC actions increases as more news comes to light.
What do you think about CAVirtex? Comment below!
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