Dohrnii Labs has filed a police report in the UAE, accusing the local crypto exchange Blynex of liquidating its tokens without authorization and failing to comply with loan agreements.
Dohrnii Labs' Accusations Against Blynex
Dohrnii Labs reported depositing 12,649.99 Dohrnii (DHN) tokens with Blynex. On March 23, the company used 8,650 of these tokens as collateral for a 30-day loan of 80,000 USDT. According to Dohrnii, Blynex never delivered the USDT and liquidated the 8,650 DHN position on Uniswap, receiving 149,151 USDT, which led to a drop in the token's market value. Attempts to withdraw the remaining 4,000 DHN tokens were unsuccessful.
Blynex's Response to the Accusations
Blynex co-founder Mike Baskes explained that the incident was part of their automated risk management system, which detected a high risk of significant collateral drop in case of liquidation. When the tokens were sold, only 145,000 USDT were generated instead of the original amount. Blynex took actions to prevent financial losses. Baskes explained: “Given this liquidity constraint, the system recognized a high risk of further loss if the collateral wasn’t liquidated immediately, as the tokens would be difficult to sell at a favorable price in the current market.”
Legal Actions and Further Steps by Dohrnii Labs
Dohrnii Labs has filed a police report in UAE and threatens to take legal action against Blynex. A Dohrnii representative stated that this was only a first step and, if Blynex ignored their communications, they would escalate legally. Dohrnii is also reaching out to other affected projects to explore joint legal claims. Despite Blynex's attempt to settle the matter by offering 80,000 USDT and a withdrawal of 4,000 DHN, Dohrnii found the offer unacceptable.
Dohrnii Labs aims to hold Blynex accountable through legal and regulatory channels, ensuring fairness and user rights protection.
