Publicly-Listed Aussie Crypto Firm’s Shares Drops Following $1.8 Million ICO Legal Action

DigitalX, an Australian blockchain, and crypto advisory firm listed on the Australian Securities Exchange (ASX) have gone through 12 percent losses following the federal court’s $1.8 million claim.

DigitalX in a mandatory disclosure under ASX guidelines disclosed it was served with an Originating Application and Statement of Claim in the Federal Court of Australia by a group of stakeholders who are part of an initial coin offering (ICO) which DigitalX served in an advisory capacity.

The claim made by the distressed group, who made an investment in the coin offer, is at a total of USD $1,833,077 including damages.

As a response, DigitalX denied all allegations of misconduct and claims it will remain to assess the supposed claims.

Although very little is known about the ICO for the time being, it is reported that the “ICO was not local”. DigitalX is a Perth-based firm with offices in Sydney and New York.

Shares in the frim, one of the earliest publicly-listed cryptocurrency in the world, slumped from AUD $0.09 to a low of AUD$0.81, a drop of almost 12 percent after the public disclosure was made.

According to the firm, it “has strong grounds to defend any claims bought forward by these applicants,” adding:

“As such, the Company intends to vigorously defend this matter and protect the reputation of the Company.”