- The lawsuit against crypto CFD trading company Countinghouse has been dropped
- Countinghouse blew up in December last year after an alleged sale of the company fell through
- Investors have been left in the dark as to what really happened and where their money went
The investor lawsuit against the now defunct Australian cryptocurrency operation Countinghouse has ended after the 11 litigants discontinued the case. The reasons for the discontinuation have not been publicly revealed, but FullyCrypto understands that the cost of continuing with the lawsuit would have been more than could feasibly have been retrieved by any victory. This leaves the nature of the Countinghouse operation still unknown to victims, with no confirmation of whether investors were bilked from the outset or if the directors did indeed operate the fund and bungle the sale last December.
“Sophisticated Offshore Crooks” Blamed for Fund Collapse
Countinghouse purported to be a Contract for Difference (CFD) cryptocurrency investment vehicle with a decade-long background in foreign exchange trading. The company’s registration with the Australian Securities and Investments Commission had afforded them an air of legitimacy, and they raised $2 million during a 2018 ICO.
After a seemingly successful 2018, the company froze withdrawals in early 2019 and in December last year claimed it was selling the trading algorithm to a brokerage firm called JFD Wealth. The ‘sale’ collapsed however, resulting in a lawsuit being filed just a week later by a cabal of skeptical investors, claiming the whole thing was a scam from the start, that no actual trading was done, and that the sale was an exit scam.
Directors Hid Behind Bankruptcy
Countinghouse directors Tim Dawson and Mike Pomery, who frequently posted pictures of themselves and their families in the Countinghouse Telegram group, declared bankruptcy in March this year, which instantly kicked any chance investors had of getting any money back to the curb.
The case nevertheless continued, with litigants hoping that they could at least identify where the $2 million ICO money went and if any trading was actually conducted. This information could not be obtained from Pomery and Dawson however, and with funds running out the group pulled their lawsuit on November 3, meaning that Dawson and Pomery are free to establish other companies in the same field.
Investors Left With No Closure
The termination of the lawsuit means that investors still don’t know what really happened to their money and to Countinghouse. A number of theories exist, ranging from an out and out scam to a blowup trade losing all the money, but unless the Australian police take an interest, investors will never know what happened to the seemingly legitimate crypto investment firm.