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Australian Crypto Firm DigitalX Reveals Mediation Request on $1.8 Million ICO Case, Denies Wrongdoing

Publicly-listed DigitalX, an Australian blockchain and crypto advisory firm, said it received a request for mediation from court proceedings of a $1.83 million case related to an ICO gone wrong.

As reported initially in September, DigitalX revealed it was served with an Originating Application and Statement of Claim by a group of disgruntled stakeholders involving in an initial coin offering (ICO) where Digital X served as an advisor.

The claim was filed in the Federal Court of Australia with the group – who made an investment in the ICO – sought USD $1,833,077 in damages. DigitalX has denied any claim of wrongdoing, claiming it had “strong grounds to defend any claims bought forward by these applicants.”

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“As such, the Company intends to vigorously defend this matter and protect the reputation of the Company,” it added in a public disclosure, leading to a 12% slump in stock prices.

Now, in its quarterly report (Q3 2018) released on Tuesday, DigitalX provided an update in the legal matter to reveal it had received a request for mediation from the aggrieved plaintiffs.

Pointedly, DigitalX added:

[We will] continue to vigorously defend their claims which we believe have no basis.

Before a 2015 rebrand from Digital CC, DigitalX was formerly a cryptocurrency mining firm with a focus on bitcoin. In its report, the company revealed it held 431.42 bitcoins, valued at US $2.8 million alongside $166,122 in altcoins trading on exchanges. The company also revealed cash reserves of US $5.4 million.

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