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NSW Non-Delivery of Purchased Bitcoins from Bitxoin

Discussion in 'Australian Consumer Law Forum' started by Jezza90, 27 May 2014.

  1. Jezza90

    Jezza90 Well-Known Member

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    I'm not sure if this community is familiar with the new up-coming currency known as BitCoin from Bitxoin, but I figured it would be worth a shot asking here.

    Basically what happened is the following:
    I placed an online "order" to purchase BitCoins at a particular company's website. (This company is www.bitXoin.com)
    I then go and pay for my order by way of cash-deposit at my local commonwealth bank branch directly into their account.
    The amount is for 2528$ (AUD)
    The company is meant to supply the bitcoins to my online "Bit-Wallet" (A sort of personal bank account on my computer), within 4-6 hours of the transaction being made and my money being deposited into their bank account.
    The company failed to provide what I paid for, have not contacted me AT ALL, even though I have sent them dozens of emails and phone calls.
    After 3 days of me ringing them, they disconnected their business phones, and I still have not heard back from them in any way after 1 week of them taking my money.

    I have contacted ASIC and they told me it is outside their jurisdiction because they do not recognize "bitcoins" as a legal currency, and to take it up with police.
    I know however, the police wont recover my funds, they will just try make a criminal case against them.

    I would like to know where I would stand under Australian consumer law creating a civil-case against this company.
    I have informed them by email twice they have put me in a situation of financial stress, and I will be charging them interest on the amount they owe me for each day they refuse to contact me about the situation.

    Furthermore they company is continuing to "trade" from their website, so they could still be stealing/frauding people even still.

    Thanks for any help or advice.
     
  2. Jezza90

    Jezza90 Well-Known Member

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    Update:
    I also have the deposit receipt from the bank, the order confirmation email from the company themselves at the time of the order, and copies of emails/phone calls I have made to them since the incident.
     
  3. John R

    John R Well-Known Member

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    Hi Jezza90,
    Under Australian Consumer Law, services provided by a business to a consumer must, among other things, be delivered within a reasonable time when there is no agreed end date. Please see the Australian Competition and Consumer Commission's (ACCC) website on consumer guarantees for further information.

    If you believe that the services provided have not met one or more consumer guarantees, you may consider writing a complaint letter/email to Bitxoin Pty Ltd, the company that operates the bitxoin.com website.

    Your letter/email should set out the factual summary of the events to date (similar to what you have written above but with clear headings, checked for spelling, etc.) and a request for Bitxoin to either transfer the agreed Bitcoin (BTC) to you OR immediately refund the funds deposited because, under Australian Consumer Law, you do not believe that the services have been provided within a reasonable timeframe.

    Please see the ACCC's website for information on how to make a complaint.
    The Queensland Office of Fair Trading's "Resolving a Complaint" page has sample letters and further information that may assist.

    If you do not receive a satisfactory resolution to your complaint from the business within a reasonable timeframe, you can submit your complaint online to your state/territory Office of Fair Trading/Consumer Affairs for investigation.

    Hope this helps. Please keep us updated with your progress!

    Further Information about Bitxoin Pty Ltd (Bitxoin)
    Based on Bitxoin's Contact page:
    • Bitxoin's listed email address on their website is info@bitxoin.com.
    • Bitxoin's listed phone number on their website is 1300 669 919.
    • Bitxoin's listed postal address on their website (PO 7906 GCMC Q 9726) is a PO Box at the Gold Coast Mail Centre (GCMC) in Queensland. It should be addressed as "PO Box 7906, Gold Coast Mail Centre, Queensland 9726".
    Based on a WHOIS search for the bitxoin.com and bitxoin.com.au domain names:
    • Both domain names are registered to Bitxoin Pty Ltd.
    • The contact information listed for bitxoin.com.au is David COLLINSON (exg@bitxoin.com).
    • The contact information listed for bitxoin.com is David COLLINSON (web@bitxoin.com, 0452 248 455).
    Based on public information available from the Australian Securities and Investments Commission (ASIC):
    • Bitxoin Pty Ltd (ACN 162 812 400, ABN 61 162 812 400) is a wholly owned subsiduary of Roosevelt Group Pty Ltd (ACN 162 639 358, No ABN found).
    • Bitxoin Pty Ltd appears to share their registered office with their parent company and another business, Custom Solar, at Unit G11, 47-59 Ashmore Road, Bundall, Queensland 4217.
    • The sole company director and secretary of Bitxoin Pty Ltd and Roosevelt Group Pty Ltd is David Matthew COLLINSON (DOB: 23/03/1979, POB: Dewsbury, United Kingdom).
    • COLLINSON's listed address is Unit 5, 921 Brunswick Street, New Farm, Queensland 4005.
    Based on a WHOIS search for the rooseveltgroup.com.au domain name:
    • The contact information listed for the domain name is David COLLINSON (dc@357host.com).
    Based on a WHOIS search for the rooseveltgroup.net domain name:
    • The contact information listed for the domain name is David COLLINSON (dc@357host.com, +44 (0)746 635 4981).
    Additional notes:
     
  4. Jezza90

    Jezza90 Well-Known Member

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    Thanks for your quick and informative reply John!
    Very useful information.
    Im not sure what that "Domain name Contact Number" is though (The one ending in 4981) I tried to call it and it says its an invalid number. Would not surprise me if he used a fake one to create the domain.

    I have made a copy of the email I sent to the all email addresses I could find linked to the company, I sent this email 3 days after the initial deposit. On the same day they decided to disconnect their phones.
    Would this hold up in a legal battle if I end up in one over trying to reclaim my money...and if I do have a good chance of winning, would I be able to charge them with my court costs which I had to spend trying to get the money back?

    Thanks for your time John

    So David & Team.

    We are currently 71 hours past the point I made my order and gave you $2,528.65 AUD of my money. ( Deposited 20/5/2014 @ 11:46 am )
    71 hours and you have not sent 1 email, or made 1 phone call to me regarding the status and whereabouts of the goods you promised to provide under contract stated in your website. You have answered your phone ONCE after dozens upon dozens of phone calls from me, and you only answered it ONCE when I called from a private number.
    All this from a company that promises fast transaction times (2 minutes - 4 hours. Always by 7pm that day....apparently)
    And now, as of 23/5/2014, you have disconnected your mobile number and related 1300 numbers, effectively cutting off all modes of contact from your clients.
    This is bad business practice and evidence of your knowingly doing the wrong thing.

    So here is how its going to go down.

    After the 84 hour mark, if your team of 9 (apparently) still cant find the competence or the initiative to either email me at this address, or call me on the number I have provided to you on several occassions... (Once again: 0403 ** ** **)... I will consider this a breach of your agreement and down right fraud, and put to you that you have caused me financial hardship. That money was supposed to be transferred to a local mechanic for vehicle repairs so I could get to work.
    Seeing as I have not been able to get to work to do my shifts, you and your company have cost me so far, apart from the $2528.65 AUD, an additional 12 hours of work at a rate of approx. $25 an hour = $300 AUD.

    So as I said, after the 84 hour mark if you still decide to not make ANY EFFORT AT ALL to contact ME, I will also be putting to you, that you you and your company will owe me daily interest at a rate of 1% per day until the matter is rectified and I am payed the amount owed to me in full, either by way of money transfer to my bank account or BITCOIN transfer to my bitcoin wallet address provided at the time of my order.

    This is in ADDITION to any more loss incurred by me from shifts I am unable to get to while my mode of transport is in need of repairs.

    At this point I feel you owe me, at the least : $2828.65 AUD

    The 1% interest will be added to this amount DAILY at 11:46pm every night beginning from 23/5/2014.

    Thanks for reading guys, if you managed to keep your eyes open this far down the page.
    Maybe now I will hear from you soon.
    Regards.
     
  5. John R

    John R Well-Known Member

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    Hi Jezza90,
    A few numbers were listed in my first reply:
    • 1300 669 919
    • 0452 248 455
    • 0429 888 869
    • +44 (0)746 635 4981 - This is a UK phone number. You may need to try and dial it as 0011 44 746 635 4981 (or similar).
    You should consider re-drafting your original email as a formal complaint letter that addresses the requirements that were set out in my first reply and the ACCC's website section on how to make a complaint. Please keep us updated.
     
  6. Jezza90

    Jezza90 Well-Known Member

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    Thanks again John.

    Unfortunately none of those numbers are in service any longer. The company and its owner/s have effectively cut off all means of communicating with them but are still trading online, but still refusing to answer my emails.
    I have spoken to Travis and another employee named Hayden by phone call and facebook messages. They have both told me they no longer apparently have anything to do with the company and they have no idea whats going on.

    I did as you suggested and re-drafted my previous email and sent it today, following the guidelines set out by ACCC for a formal complaint.
    I am considering opening a consumer application with the NSW Civil & Administrative Tribunal, as the fee for a matter up to $10,000 is only 40$ I believe.

    Do you believe this is a good avenue to take in trying to reclaim my money?

    The NCAT however states in its application form "The Tribunal can hear matters where the contract was entered into, or goods supplied or services given, in New South Wales. If the place of contract is not clear you should seek legal advice". Seeing as I entered into the contract by bitXoin's website, would this be applicable or should I contact the QLD equivalent of the NCAT.

    Here's a copy of my re-drafted email too.

    Thanks for your time John, I appreciate it greatly.
    **************

    * *****Lane
    ****** River
    NSW, *****


    04 ********


    Dear Manager/Owner/Founder (David Collinson)


    Re: COMPLAINT ABOUT BITCOINS PURCHASED AT BITXOIN PTY LTD ON 20/5/14

    I bought bitcoins from you using your automated service on your website www.bitXoin.com.
    I transferred the agreed amount into your bank account by way of cash deposit, quoted in the order confirmation email your business sent to me.
    The amount was for $2528.65AUD.
    You HAVE NOT in ANY WAY lived up to your end of the deal, and have simply taken my money and refused to answer any of the dozens of phone calls or several emails I have made to you and your business.
    You answered your phone ONCE and assured me it was a technical problem and you would have my bitcoins + extra (for the extended delay on your service) transferred to me by 7pm on the 21/5/14 and en email would be sent to my address to confirm this.
    On the 23/5/14 you disconnected your personal and business phones, and I have had NO contact from you or your company since the 21/5.

    I have spoken to 2 other individuals regarding this problem in an attempt to try and have the problem solved, and get into contact with you. Travis Cattach and Hayden Ashton, who claim they are both no longer part of your organization.

    I sent you an email on the 23/5/14 outlining pretty much the same thing as above, and how much money you have cost me, and what I expect to be done about the situation, including additional costs. You STILL to this date (30/5/14), have not made ANY effort to solve the problem, or even contact me regarding it.


    I am no longer seeking bitcoins to be deposited into my account, but a full cash refund + the interest I informed you I would be charging on the total amount + the 300$ I lost last week from not being able to get to my shift at work.

    At THIS point in time, I feel you owe me $3026.65AUD


    I expect to hear from you within 5 business days. If I do not hear back making a formal complaint to the ACCC & the consumer protection agency in NSW and QLD, and also be registering a complaint with ASIC, and the Police.
    I will also be ensuing a legal action against you and your company.



    You can contact me at this address, ***_**@hotmail.com,
    in writing to my postal address located at the top of this email,
    or once again on 0403******

    Sincerely,
    ****************
     
  7. John R

    John R Well-Known Member

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  8. Jezza90

    Jezza90 Well-Known Member

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    Thanks John. I just finished my application to NCAT. Hopefully will hear back with a hearing date soon.
    I will keep this topic bookmarked and update as it progresses, and see what happens.
     
  9. NHA

    NHA Member

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    I wish i saw this post 1 day ago as i also have just deposited ~1200 into their accounts expecting bitcoins to arrive in my wallet.

    I now cant get a hold of them in any way.

    Did you end up getting in contact with them?

    Can you private message me?
     
  10. John R

    John R Well-Known Member

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    Hi NHA,
    @Jezza90 hasn't been online for 10 days but should receive an email notification of this updated thread. Do you have any additional contact information for Bitxoin?
     

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