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Newnote Financial Corp
Symbol C : NEU
Shares Issued 36,367,090
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Newnote sued by Cointrader.net customers

2017-09-13 10:44 ET - Street Wire

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by Mike Caswell

Newnote Financial Corp. and its chief executive officer, Paul Dickson, have landed in a heap of litigation over the demise of Newnote's bitcoin trading site, Cointrader.net. At least three customers have filed lawsuits against the company over lost bitcoins. For its part, Newnote denies that it owes the customers anything, and says that it shut down its bitcoin site after a security breach.

The lawsuits come after the shutdown of Cointrader.net in March, 2016. Just one year earlier, Newnote had acquired the site for $1.5-million in cash and shares. When it announced the acquisition Newnote touted the site as a "leading North American bitcoin exchange" and said it was signing up over 1,000 new users per month. The site was processing more than $1.5-million in bitcoin transactions each month as well, the company said.

Newnote then abruptly shut the site down on March 29, 2016. It cited rising maintenance costs and lower trading volume (and at the time made no mention of any security troubles). It said that users with balances remaining were "being settled" and would have their accounts closed. It appears that the shutdown has not been going entirely smoothly, however. More than one customer has taken the company to court seeking the return of bitcoins.

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where did the bitcoin mining equipment go? Newnote spent a lot of money on these units and now they're worth even more these days due to the price of bitcoins. Interesting when ever a public a company just stops filing financials and gets de-listed and all the assets seem to just disappear.

Posted by Pete McLeod at 2017-09-13 16:11

What happened/resulted from the financial audit that took a supposed 9 months to do? Does Newnote still own SOCOMO technologies/and the coin exchange/algorithm they purchased from coinbase back in May 2014? Do they still own 20% of Coinpayments.net? What about all of their other relationships? My wife is a large shareholder (ceased traded shares), and this company just disappeared.....no word...nothing. Is there still any hope that this company will re-list on the CSE? How can Paul be a CEO/Pres of another CSE listed company(SAAS) , after these kind of results? It would be nice to get some answers , some 2+ yrs. later.

Posted by George Wright at 2017-09-14 19:21

What happened/resulted from the financial audit that took a supposed 9 months to do? Does Newnote still own SOCOMO technologies/and the coin exchange/algorithm they purchased from coinbase back in May 2014? Do they still own 20% of Coinpayments.net? What about all of their other relationships? My wife is a large shareholder (ceased traded shares), and this company just disappeared.....no word...nothing. Is there still any hope that this company will re-list on the CSE? How can Paul be a CEO/Pres of another CSE listed company(SAAS) , after these kind of results? It would be nice to get some answers , some 2+ yrs. later.

Posted by George Wright at 2017-09-14 20:43

I am also suing Newnote Financial, Cointrader Exchange and Paul Dickson in BC Small Claims Court. The details of my claim and the defendant's reply are available at: www.adaptroninc.com/basicpage/cointrader

Posted by Brett N. Martensen at 2017-11-05 21:55