Business

Ed Drake

Blockchain Terminal-linked firm sued in New York over unpaid fees

A company affiliated with professional crypto trading service Blockchain Terminal is being sued in New York, over allegations it failed to make licensing payments due under contract.

The action is being brought by FactSet, a financial research company which had partnered up with the defendant CG Blockchain in developing a new interface between the company’s separate products. FactSet had also agreed to license its products and technology to CG Blockchain under the deal.

As part of the agreement, FactSet alleged some $3.8 million in fees were due, resulting in a breach of contract as well as the unjustified enrichment of CG Blockchain, which FactSet claimed benefited from the licensing deal without paying the fees due under the agreement.

The plaintiff is seeking to recover damages of $2.8 million, along with interest and legal fees, for settlement of the claims arising from the contract and the unjustified enrichment action.

The news comes as only the latest case against CG Blockchain, which has been subject to other actions in recent months over non-payment. Back in October, a claim was filed by a New York-based recruitment firm, Clarity LLC, over a sum of $150,000 in fees which still remains unpaid.

Following an investigation into Blockchain Terminal and its affiliates by The Block, it was revealed that the firm was run by Shaun MacDonald—an alias used by convicted fraudster and crypto pariah Boaz Manor.

With a track record of scams, the news of Manor’s involvement will do little to settle the nerves of those now proceeding through the New York courts.

Back in 2012, Manor was sentenced to four years in prison in Canada, on charges relating to the misappropriation of some $106 million. As part of his sentence, Manor accepted a lifetime ban from working in the securities sector, as well as agreeing to pay compensation of $8.8 million.

It was subsequently confirmed by Blockchain Terminal on Twitter that Boaz Manor was indeed the man behind the Shaun MacDonald alias, causing concern amongst those who had stumped up the $31 million the firm raised through its ICO.

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