Camp BX Crypto Exchange Sued for Allegedly Stealing Customers’ BTC

Submitted by Anonymous (not verified) on Tue, 05/31/2022 - 00:20

Camp BX was a crypto exchange in Atlanta, Georgia that is becoming well known not because of its crypto trading protocols, but because it’s one of the first to be sued by most of its customers.

Camp BX Is Getting “Federal” Attention

Camp BX doesn’t have a long or stellar history. The company was only around for a little while, but the enterprise – when it shut down – decided to keep all its clients’ money and not give anything back. This raised serious red flags with all the people who did business with the firm, and it wasn’t long before a class-action lawsuit was initiated.

This all occurred roughly four years ago. Many customers up to now were not able to get their bitcoin units back, though now it appears the court has finally ruled in their favor. A federal jury in Atlanta has decided that all customers who were cheated out of their earnings by Camp BX should have their funds returned immediately.

For several years, roughly 70 customers traded bitcoin and other units of crypto through Camp BX. The physical address for the company was a PO box in a Roswell UPS store, though the company is believed to have done most of its business remotely or online. Attorney John Richard explained in an interview:

In this case, the exchange worked fine for a number of years.

However, that ultimately changed in 2017 when several of the customers in question lost access to their bitcoin accounts. This is often what’s known as a rug pull in the crypto space. A company or project garners money through investors or customers from all corners of the globe. Right as it appears the money is going to be put to good use, the executives close the shop so to speak and make off with all the funds. It’s a classic case of fraud, and it happens quite a bit in the digital currency arena.

A year after all this began, the Georgia Department of Banking and Finance sent a cease-and-desist letter to Camp BX as the company was allegedly engaging in financial transactions without a license. Several customers were also chatting on online forums talking about how they couldn’t access their money. One man – Jay Daniel – had roughly $250K in BTC that he could not access. He says:

I went to log into the website, couldn’t do transactions and it was like, ‘Oh crap.’ They completely kept our property, would not respond to reasonable inquiries, and literally we had to file the first bitcoin case in federal court to get our money back.