{"id":125675,"date":"2025-03-24T09:23:19","date_gmt":"2025-03-24T09:23:19","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125675"},"modified":"2025-03-24T09:23:19","modified_gmt":"2025-03-24T09:23:19","slug":"dohrnii-labs-accuses-blynex-of-illegally-liquidating-token-assets","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125675","title":{"rendered":"Dohrnii Labs accuses Blynex of illegally liquidating token assets"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsLearn-to-earn platform Dohrnii Labs has filed a police report in the United Arab Emirates, accusing local crypto exchange Blynex of liquidating its tokens without authorization and failing to deliver a promised loan.\u00a0<br \/>\nAccording to a statement shared with Cointelegraph, Dohrnii Labs deposited 12,649.99 Dohrnii (DHN) tokens \u2014 valued at more than $500,000 \u2014 with Blynex. On March 23, the company said it used 8,650 of those tokens as collateral for a 30-day loan in exchange for 80,000 Tether\u2019s USDt (USDT).<br \/>\nDohrnii claims the exchange never delivered the USDT. Furthermore, the team said Blynex liquidated its entire 8,650 DHN position on Uniswap, receiving 149,151 USDT and causing a drop in the token\u2019s market value.\u00a0<br \/>\nAttempts to withdraw the remaining 4,000 DHN tokens were unsuccessful, the company said.<br \/>\nSource: Dohrnii LabsBlynex claims it was automated risk management<br \/>\nBlynex co-founder Mike Baskes told Cointelegraph the incident was part of their \u201cautomated risk management system.\u201d Baskes claimed their system detected a high risk that the collateral would drop significantly in the event of liquidation.<br \/>\nThe Blynex executive said that when the tokens were sold, it only generated 145,000 USDT instead of its original amount. He noted that DHN token liquidity was limited, estimating just $315,000 available at the time of the transaction.<br \/>\nThe executive claimed Blynex took action to prevent financial losses:<br \/>\n\u201cGiven this liquidity constraint, the system recognized a high risk of further loss if the collateral wasn\u2019t liquidated immediately, as the tokens would be difficult to sell at a favorable price in the current market.\u201d<br \/>\nDohrnii Labs has challenged that explanation, calling Blynex\u2019s justification \u201cmisleading\u201d and alleging that the exchange liquidated collateral worth nearly double the value of the loan.<br \/>\nRelated: Dubai Land Department begins real estate tokenization project<br \/>\nDohrnii Labs threatens legal action against Blynex<br \/>\nIn response, Dohrnii Labs filed a police report in the UAE and threatened to take legal action against the crypto exchange.\u00a0<br \/>\nA Dohrnii Labs representative told Cointelegraph that the police report was only a \u201cfirst step.\u201d The representative said if Blynex ignored their communications, they would legally escalate the matter:<br \/>\n\u201cSince the project and the individuals responsible are based in the UAE, we are also getting in touch with local regulators, including VARA, ADGM, and other relevant authorities. Furthermore, we\u2019re in contact with other affected projects and are actively exploring the possibility of joint legal action.\u201d\u00a0<br \/>\nThe team said they want to ensure accountability through the legal system and regulatory oversight.\u00a0<br \/>\nDohrnii told Cointelegraph that Blynex attempted to settle the matter by offering them 80,000 USDT and allowing the withdrawal of 4,000 DHN tokens.<br \/>\nHowever, the exchange added a condition that the platform would drop all legal action. \u201cThat is unacceptable,\u201d Dohrnii Labs said.\u00a0<br \/>\n\u201cThe 4,000 DHN tokens in question are user deposits \u2014 not negotiable assets. The right to withdraw these funds should never be up for discussion,\u201d Dohrnii Labs added.\u00a0<br \/>\nMagazine: Ridiculous \u2018Chinese Mint\u2019 crypto scam, Japan dives into stablecoins: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/dohrnii-labs-blynex-token-liquidation-dispute?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsLearn-to-earn platform Dohrnii Labs has filed a police report in the United Arab Emirates, accusing local crypto exchange Blynex of liquidating its tokens without authorization and failing to&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125675"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125675"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125675\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125675"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}