Canadian crypto startup Paycase Global Crop. has filed a civil lawsuit against TMX Group, alleging a breach of contract amid the termination of a deal to create cryptocurrency-related products and services.
First reported by Coindesk, the crypto company is seeking $500 million in compensation from the operator of the Toronto Stock Exchange, making it one of the largest crypto-related lawsuits to date.
London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now
In addition to the compensation, the company is also seeking resume of the agreement by TMX Group.
OTC desk which never saw the light
According to court documents filed on Monday, Paycase entered into a deal with TMX subsidiary Shorcan DCN March 21, 2018, to develop a TMX OTC desk and data feed by the second quarter of that year. Though TMX would have obtained the full ownership of the platform, Paycase would have benefited from TMX’s stature and clientele.
However, on August 31, 2018, TMX amended the contract to extend the deadline by two weeks to put together a Statement of Work which would re-define various details of the collaboration including services, consent, specifications, and deadline. In the lawsuit, Paycase, however, alleges that it never received any Statement of Work from TMX.
In addition, the crypto company also alleged that it was advised by the president and chief executive of Shorcan DCN Peter Conroy to buy the company from TMX to circumvent “board approval” issues delaying the projects.
The lawsuit also detailed that on December 6, TMX sent Paycase a “Mutual Termination Agreement” which, according to the latter, did not justify any reason for termination and the convenience in the contract was still intact.
The executives of both companies also met in February this year to discuss the dismissal of the contract further, however, Paycase also alleged that Shorcan stopped delivering its part of the contract even before the meeting in February.