iSignthis files AUD 264m against Australian Securities Exchange
Electronic money and payments firm iSignthis has filed a damages claim worth AUD 264 million ($188m) against the Australian Securities Exchange (ASX).
ASX suspended the trading of iSignthis shares in October 2019. The exchange cited media speculation, price volatility, and regulatory concern as root causes for its decision.
iSignthis tried to prevent the notice, on reason that it could cause it reputational damage.
It is charging ASX with “misleading and deceptive conduct” by publishing the October notice. Although the firm is asking for $264 million in damages, it notes the figure could increase.
“ASX now needs to demonstrate to the Federal Court that its ‘Statement of Reasons’ is supported by evidence, and not the mere conjecture that we claim it is,” says iSignthis CEO, John Karantzis.
iSignthis has a stake in Australia’s second largest stock exchange, the National Stock Exchange of Australia (NSX).
In February, the identity company teamed up with the NSX to develop Clearpay. The new venture is based on distributed ledger technology and aims to compete with ASX.
In March, Karantzis joined NSX as its new CEO and managing director. iSignthis says it will consider “acquisitions of competitors and complementary businesses” in future. It has called the ASX a “monopolist incumbent”.
In a short statement, ASX says it takes its obligation to monitor and enforce compliance “very seriously” and is “defending these legal proceedings”.