The largest cryptocurrency exchange in South Korea, UPbit and its parent company Dunamu got sued by the PICA project. The suit was filed this week by the PICA project and Dunamu was named in it. It is the first litigation proceedings between a crypto developer and an exchange.
PICA Project is the developer behind PICA cryptocurrency. The suit was filed based on the June 11th announcement of UPbit where it listed 25 cryptos that it would delist. Moreover, the delisting cryptos included PICA. The coins were to be delisted before 28th June, thus PICA acted so promptly.
UPbit Demanding Money for Listing
The suit suggests that UPbit asked PICA for an airdrop of 5 million PICA coins before it could get enlisted. The price of the coins exceeds 250 million won.
The PICA team provided UPbit with the coins. However, only 3% were used for airdrop. The rest of it was kept by UPbit in cold storage to earn money from. The suit read:
“It seems that only 3 percent of the five million PICAs were actually used for the airdrop and UPbit transferred the rest to its cold wallet and sold it to take profits.”
UPbit has also come out in their defence saying they don’t do such things. Therefore, onsidering the lawsuit as slander they said they have never used the funds from the airdrop. Saying,
“We take no money in relation to listing in any cases. We have never used or traded the rest from the airdrop event.”