Specialist litigation firm Helix Law is seeking almost £110 million from a cryptocurrency investment company whose shares trade in London.
Jade Road Investments Limited, an offshore funding firm with links to Hong Kong and Dubai, is being pursued over the alleged failure to issue millions of shares to their client, a Guernsey-based consultancy.
Jade Road Investments is listed on London’s Alternative Investment Market (AIM), and specialises in the use of cryptocurrency investments to fund more traditional assets.
It is alleged that Jade Road Investments failed to deliver on an agreement to issue 70m shares to the claimant in exchange for consultancy services.
Alex Cook (pictured), senior partner at Helix Law, said: “We have today launched recovery action arising out of what should have been a straightforward equity-based remuneration arrangement.
“Our client delivered the services it was engaged to provide and has not received its entitlement to the promised shares.”
Jade Road Investments agreed to issue 70m shares in exchange for consultancy services aimed at improving the company’s position and ability to secure third-party financial backing and investment, Helix Law says.
The value of Jade Road’s shares has subsequently significantly increased and Helix Law, a specialist litigation firm based in Brighton and working nationally, is pursuing the current market value of the shares, valuing their client’s loss at approximately £109m.
Cook added: “Jade Road Investments are quoted on the London Stock Exchange. When listed companies benefit from advisory work that drives investment and valuation, the market rightly expects those arrangements to be honoured.
“Equity commitments should be honoured, or we will pursue recovery.”
BusinessCloud has contacted Jade Road Investments for comment.