• Tue. Aug 2nd, 2022

Wyoming firm pursues digital currency deal

ByHazel R. Lang

Jul 6, 2022

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By Jim Angell, Cowboy State Daily

A Wyoming company that promised artwork and gemstones to back a digital currency is suing the company that issued the digital currency.

Axtra, in a lawsuit filed in the US District Court, claimed that the company that issued the digital currency, AXIA, changed the terms of its agreement with Axtra, leaving Axtra unable to obtain a return on its investment. .

“After years of pledging and encumbering its assets to AXIA, and allowing AXIA to benefit from holding these assets in its reserve to, among other things, build and promote the entire AXIA project and attract millions of dollars in AXC’s public purchases, Axtra was prevented from monetizing in any way the consideration it received from its contribution of assets to AXIA,” said the lawsuit, filed last week.

According to the lawsuit, Axtra worked with AXIA to back its cryptocurrency with real assets, a type of digital currency designed to be more stable in value because it is backed by durable assets.

Axtra said it pledged an undisclosed amount in artwork, gemstones and other hard assets to back AXIA’s currency. The lawsuit said Axtra and other companies pledged a total of $30 billion.

In exchange, the companies received AXIA coins, valued at $13.43 on Tuesday, and options to buy more.

In promoting the AXIA coin, also known as AXC, AXIA cited the fact that it had assets to back its currency, according to the lawsuit.

“AXIA used (Axtra’s) assets, including a significant portion of AXIA’s ‘reserve,’ for nearly two years to attract several million dollars in public purchases from AXC,” the lawsuit states.

After the launch of AXC in July 2021, AXIA changed its currency structure from a reserve to a “cash” structure that no longer needs Axtra’s assets to support itself.

Axtra’s assets were freed up, but Axtra said restrictions were placed on its ability to sell its options and the coins it held were downgraded to a non-interest bearing type. Axtra’s holdings were also devalued by a division of the coin’s value which Axtra was not allowed to profit from, according to the lawsuit.

“It appears that AXIA’s position is that AXIA will no longer use (Axtra’s) assets to support AXC after having used these assets for two years to support and build the AXIA project, Axtra is no longer entitled to the consideration that Axtra received in the form of the AXCs and options on the AXCs under its contracts with AXIA,” the lawsuit states.

Axtra is seeking damages to be determined for allegations against AXIA for breach of contract and breach of its duty of good faith and fair dealing.

The lawsuit asks the court to force AXIA to honor its spin-off with respect to Astra’s holdings, release all of Axtra’s options on AXC, and allow Axtra to sell or transfer its options to AXC.

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