US court orders former crypto exchange to refund Bitcoin


A federal jury in Georgia has ordered former crypto exchange CampBX to refund the Bitcoin (BTC) it took from customers. The order comes more than four years after the exchange was shut down, according to a WSBTV report.

CampBX was the first crypto exchange in the United States, with more than 70,000 users trading Bitcoin on the exchange for several years. However, the Atlanta, Georgia-based platform ceased operation in 2017 after users were unable to access their accounts.

The Georgian Ministry of Banking and Finance ordered the platform to cease operations in 2018 because it did not have a license. CampBX heeded the order but failed to refund the thousands of users who had Bitcoin and cash on the platform.

Customers started complaining online and sharing their experiences. One of them, Jay Daniel, decided to take the case to court. Daniel, a computer security consultant and crypto trader, said he has over $250,000 in cash and Bitcoins in his CampBX account.

Daniel said:

They completely kept our property, failed to respond to reasonable requests, and we literally had to file the first bitcoin case in federal court to get our money back.

With the judgment in his favor, Daniel will at least be able to recover his funds, but the list of people who have not yet been reimbursed remains long. John Richard, Daniel’s attorney, said:

There are still people waiting. We’ve contacted a number of customers, and a number of CampBX exchange customers have contacted us who still haven’t gotten their bitcoin back.

CampBX says it has refunded most of its customers

Meanwhile, CampBX founder Keyur Mithwala said the exchange has refunded most customers. In an email sent to Channel 2 Action News, he said 99% of customers had already received a refund.

To date, we have approximately 190 remaining clients that we are working to verify and close KYC-AML over the next three months.

Richard disagreed with Mithwala’s statement and said he only knew one person who had been reimbursed by CampBX. Richard added that he plans to represent others with similar cases against the defunct company.

The ruling marks the first time the court will ask an entity to repay Bitcoin. This could set a precedent for other similar cases where customers lose access to their funds due to exchange failure.


About Author

Comments are closed.