Dahrnii Labs, the Learn-to-Earn platform, submitted a police report in the United Arab Emirates, accusing the local cryptographic exchange of liquidation of tokens without authorization and not granting a promised loan.
According to the statement shared by Cointelegraph, Dohrnia laboratories deposited 12,649.99 Dohrnia tokens (DHN) – worth over USD 500,000 – from Blynex. On March 23, the company said that it used 8650 of these tokens as a security for a 30-day loan in exchange for 80,000 USDT (USDT).
Dohrnii claims that the stock market never provided USDT. In addition, the band said that Blynex has liquidated the entire 8,650 DHN items on Uniswap, receiving 149 151 USDT and causing a decrease in the market value of the token.
The company said that attempts to withdraw the remaining 4,000 DHN tokens failed.
Source: Dohrnii good
Blynex claims that it was automated risk management
Co -founder Blynex, Mike Basks, told Cointelegraph The incident was part of the “automatic risk management system”. Basks claimed that their system had detected a high risk, that the security would fall significantly in the event of liquidation.
The Blynex manager said that when the tokens were sold, he generated only $ 145,000 instead of the original amount. He noticed that the liquidity of the DHN token was constrained, estimating only $ 315,000 available at the time of the transaction.
Own director said that Blynex took action to prevent financial losses:
“Given this limitation of liquidity, the system recognized the high risk of further loss, if the security was not immediately liquidated, because tokens would be difficult to sell at a favorable price on the current market.”
Dohrnii Labs questioned this explanation, calling the justification of Blynex “misleading” and claiming that the liquidated security of exchange worth almost twice as much as the value of the loan.
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Dohrnii Labs threatens legal proceedings against Blynex
In response, Dohrnia laboratories filed A police report in the United Arab Emirates and threatened to take legal proceedings against the exchange of cryptocurrencies.
The representative of the Dohrnia laboratories told Cointelegraph that the police report was only the “first step”. The representative said that if Blynex ignores their communication, he would legally escalated the matter:
“Because in the United Arab Emirates based on the United Arab Emirates based on the United Arab Emirates, we also make contact with local regulatory bodies, including Vara, ADGM and other relevant bodies. In addition, we are in contact with other affected projects and we are actively examining the possibility of joint legal actions.”
The team said that he wants to provide responsibility through the legal system and regulatory supervision.
Dohrnii told Cointelegraph that Blynex tried to solve the case, offering them 80,000 USDT and enabling the withdrawal of 4,000 DHN tokens.
However, the exchange added the condition that the platform would abandon all legal actions. “This is unacceptable,” said Dohrnia Labs.
“4,000 DHN tokens are user deposits – no assets to negotiate. The right to withdraw these funds should never be to discuss,” added Dohrnia laboratories.
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