The lender asked the court to liquidate the British crypto exchange London Block Exchange
The lender is suing the British crypto exchange London Block Exchange (LBX) to have it liquidated, while the head of the company refuses to do it voluntarily, writes CoinDesk.
Squire Patton Boggs (UK) LLP filed a motion with the High Court of London on March 19. The hearing of the case is due this Tuesday.
Squire Patton Boggs partner Russell Hill said: “We have filed a petition to liquidate the company due to its debts to us. At the current stage, I cannot disclose any other information “.
Usually, creditors resort to such procedural actions when they want to secure the payment of the funds due to them, or at least stop the increase in debt. London Block Exchange CEO Benjamin Dives said his company owed Squire Patton Boggs £ 9,900 for drafting rules for using its service and other legal services. This amount also included the forfeit that the law firm demanded for late payment..
“This account was out of my sight until recently,” Dives said, adding that he had already sent the money to the plaintiff, but for some reason they did not reach his account. Dives is confident that the court will support him: “We are contacted by people who think that we are retiring, but there is no talk of liquidation.”.
Earlier, TTRCoin, referring to the author of the podcast What Bitcoin Did Peter McCormack, wrote that LBX may be insolvent and have “millions” of debts to creditors and its own employees.
Moreover, a representative of the technical space Level39 said that the exchange has not occupied the space allocated for it since 2018. One source reported rumors that LBX has been trying to raise funding in recent months. At the end of 2018, the company was going to conduct an ICO, but later canceled it, stating: “Obviously, the market interest in the public sale of tokens is not enough to support our plans. In addition, the token sale is likely to damage our investment and regulatory roadmap. “.