Class Claims Filed Against Cyber-Currency Exchange Site

Elizabeth DiNardo, Esq. | Associate Counsel

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On January 10, 2018, class claims were filed against defunct digital currency exchange Vircurex in Colorado federal court. Vircurex subscriber, Timothy Shaw, alleges that the Beijing-based company unlawfully froze subscribers’ accounts when it disabled the ability to withdraw Bitcoin, Litecoin, Terracoin and Feathercoin. Vircurex launched in October 2011 as a virtual exchange where account holders could deposit USD and EUR to buy, sell and exchange digital currencies.

The defendant website experienced a series of hacks in 2013 leading to its near insolvency. In 2014, Vircurex announced that it was forced to freeze subscribers accounts. However, Defendants assured subscribers that they would be repaid frozen funds out of the company’s reserve funds and future profits. Account holders argue that since the freeze, they have not received any compensation.

The complaint names Vircurex’s founder, Andreas Eckert, along with the company as an entity and an unnamed “John Doe” Chinese national as defendants in the suit. Defendants are being accused of breach of contract, conversion, constructive fraud and unjust enrichment.

 The case is: Timothy Shaw v. Vircurex, Andreas Eckert AKA Kumala, and John Doe Case No.: C.A. No. 1:18-cv-00067

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