Countinghouse Lawsuit Hits the Buffers

Reading Time: 2 minutes

The lawsuit filed by investors against the fraudulent cryptocurrency investment company Countinghouse has hit the buffers after the former directors declared bankruptcy and investors realized there is now almost no chance of getting any money back. There is however the possibility that the file will be handed to the Australian authorities to pursue legal action against the scammers.

Directors File for Bankruptcy

Countinghouse directors Michael Pomery and Tim Dawson ran the investment fund from June 2018 until its collapse in December last year, claiming that a bungled sale to a European investment fund was behind the loss of the fund, when in fact all evidence points to a long-running scam following a $5 million ICO raise. The fate of these funds remains unknown, as does the ETH that several investors sent to the company to buy tokens directly from them following the ICO.

Pomery and Dawson declared bankruptcy last month, which protects their personal assets from being seized and sold in case of a judgement against them. Adelaide-based lawyers CCK, who are representing the investors, have recommended that handing the case over to the Australian Securities and Investments Commission (ASIC) and the police is the next best step, with the lengthy investigations already conducted potentially aiding a criminal case.

There have been several instances in Australia, including some in Adelaide itself, that have seen cryptocurrency scammers being sought by police, and in theory there is no reason why this should not also be the case with Pomery and Dawson.

Second Lawsuit Still an Option

Other options still lie open to investors, such as suing Every Capital, the accountancy firm who signed off on the Countinghouse audit in January 2019, which has since admitted that it used PDF screenshots of account balances to confirm the presence of funds rather than viewing them first hand.

However, this option relies on more funds being poured in by beleaguered investors for another class action lawsuit, or a compassionate legal firm who will undertake the action pro bono.

The best chance of any kind of victory for Countinghouse investors therefore remains in the hands of the legal system, who could at least get to the bottom of what truly happened with the fund in its 18-month lifespan.