BitInstant is in Trouble as A Class Lawsuit is Filed against It

BitInstant is in Trouble as A Class Lawsuit is Filed against It
BitInstant is in Trouble as A Class Lawsuit is Filed against It

BitInstant is in Trouble as A Class Lawsuit is Filed against It

Reports are that three Bitcoiners have filed a class action lawsuit against BitInstant as according to them the company misled them with false representations about its services. The class action suit against BitInstant was filed a month ago on 18 July by plaintiffs Leandro Icono, Deborah Collins and Ulysses McGhee.

Incidentally enough, the three plaintiffs filed the case shortly before the company’s website closed for maintenance. Giskan Solotaroff Anderson & Stewart LLP for its plaintiffs claims that BitInstant made false claims about the speed of its service and the refund of fees to their clients.

Quite evidently BitInstant had promised that it will refund its fees to customers who experience undue delays in the processing of their transactions which according to the plaintiffs are disingenuous. The class action complaint filed by the three plaintiffs argues that BitInstant purports to provide a means to rapidly pay funds to Bitcoin exchanges far faster than other Bitcoin processing services.

The class action suit also claims that BitInstant had promised that customers can receive ‘coins within an hour or two; however, this has not been the truth and it is completely disingenuous. The complaint is against the misrepresentation Bitcoin gave to the plaintiffs as it says they are bringing this action to enjoin BitInstant from continuing its deceptive and unlawful practices.


The petition also claims that they require BitInstant to refund fees paid by consumers for expedited services those consumers never received, for disgorgement of all profits attributable to BitInstant’s unlawful practices, and for such other relief as requested.

The Company is Concerned about the Customers’ Expectations

On the other hand, Charlie Shrem of the company says that he has not had a chance to review the class action or complaint with his lawyers, so he would not be able to comment on the development. According to him it is obvious for all Bitcoin community that his company is dedicated to doing right by all of its customers; it is not only surprising but a concern that he will look after ASAP.

He also promised that BitInstant is committed for customers’ cause and will be taking care of the unresolved support issues and will bring a better experience. Despite all the recent developments wherein it was called by the New York Department of Financial Services requesting information about the way in which it operates, BitInstant seems working smoothly.

To contact the reporter of this story: Jonathan Millet at