iSignThis seeks $264mln in Damages from ASX Over Crypto-Related Trading Suspension

Aussie payments company iSignThis has announced legal action targeting the Australian Securities Exchange (ASX) over a dispute stemming from the suspension of iSignThis share trading — with the ASX pointing toward activity in the crypto market as a contributing factor to the trading halt.

iSignThis (ISX), an Australia-based fintech company that provides payment processing services for companies active in the Australian and European markets. The trading of ISX was suspended by the ASX in October 2019.

The ASX provided complex reasoning for the suspension of ISX trading, citing media speculation, the volatility of ISX share prices, and reviews into ISX company documents indicating that the company was providing services to cryptocurrency exchanges.

ASX “Damaged ISX Reputation,” No Public Crypto Link Evidence

In response, iSignThis has filed a court case against the ASX, arguing that their suspension from the stock market was unfair.

While iSignThis were previously seeking compensation worth only $27mln, they now have filed an amended statement of claim for the legal dispute opened earlier this year.

ISX is seeking compensation, attributing damages to the companies’ reputation caused by this report. iSignThis attempted to stop the report from being published – however, the ASX responded by saying that not releasing the Statement of Reasons would cause damage to its own reputation.

iSignThis Increases Damage Claims

Although the original lawsuit was seeking only $27mln in damages, iSignThis stated at the time that this sum would most likely increase if no resolution was provided. It has since increased nearly tenfold.

The CEO of ISX, John Karantzis, released a statement today concerning the reasons for the amended statement of claim.

 “Uniquely, ASX as a market operator may have misled and deceived the market that it is obligated to maintain on a fair, transparent and orderly basis, throwing doubt on its ability to manage a Tier 1 market.

“By any measure, the damages claimed and the impact of any adverse finding make this a high stakes and material case for the ASX.” 

If the courts rule in favour of iSignThis, who have vehemently denied providing services to any unregulated or fraudulent companies, the ASX will have to pay the damages requested, remove the Statement of Reasons and reinstate the trading of ISX shares.