BitBNS an Indian crypto exchange, received a legal notice from its users regarding frozen funds and operational misconduct that have left numerous users in financial limbo. The case of BitBNS is similar to WazirX, another Indian crypto exchange, whose users are suffering from the mismanagement and allegations of unethical practices by owners.
Advocate Aman Rehaan Khan filed the legal notice on December 5, 2024, which reveals a disturbing pattern of service failures that impacted its user’s financial well-being and mental health badly. The Crypto Times received exclusive access to the legal notice filed against BitBNS management by as many as 34 users.
The allegations include restricted access to funds, delayed withdrawals, and unauthorized transactions. Now, users demand immediate corrective actions and compensation as they had already placed their trust in exchange but encountered severe operational issues.
BitBNSControversy: From Glitches to Grievances
For those who are unaware of this issue, BitBNS is a major cryptocurrency exchange in India, founded in 2017. Since, 15th December 2022, many of its users have faced problems regarding withdrawing their funds from the platform. The exchange constantly gave silly excuses such as blaming technical glitches, but the problems got bigger and bigger.
On June 27, 2023, many of the investors found that their portfolios showing zero balance and in response BitBNS halted all withdrawals, citing another glitch.
The series of lies of the exchange continued; it was not enough that In March 2023, it was revealed that BitBNS was hacked in February 2022, losing $7.5 million. The exchange had kept this information hidden, claiming it was a maintenance issue.
Coming to the present scenario, after waiting for a prolonged time and experiencing mental frustration more than 30 users of Bitbns have finally decided to pursue legal options after BitBns stopped withdrawals and conducted unethical practices.
The exchange stands accused of multiple breaches, including violation of user’s terms and conditions, consumer protection laws, and fundamental principles of financial service provision. The platform’s actions are characterized as a deliberate and potentially tortious withholding of user assets, creating unprecedented financial uncertainty for its user base.
BitBNS Users Want Immediate Actions
Now users demand justice and immediate actions such as enabling of cryptocurrency withdrawals within a time period of 21 days. Users also demand a withdrawal limit of 5,00,000/- INR per day so they have a fair opportunity to move their funds as they deem fit.
Moreover, users also demanded compensation for the financial, mental, and emotional distress caused by the exchange misconduct of their operation.
Final Thoughts
This legal notice represents a critical moment for cryptocurrency platforms in India, underscoring the urgent need for robust user protection mechanisms and transparent operational practices.
In recent years users faced several problems from the major Indian crypto exchanges. Be it WazirX, CoinDCX, or BitBNS, users have faced problems in recent times. It reminds us why a legal framework is important in India right now.
Also Read: Obscurity, Deception and Unethical Practices: Thy name is BitBNS
