www.tradehillblog.comFOR IMMEDIATE RELEASE:
TradeHill, Inc. Files Suit Against Dwolla, Inc.
San Francisco, California - March 6th 2012 - As we have mentioned in previous press releases and blog posts, we at TradeHill believe we unjustifiably lost tens of thousands of dollars when we used Dwolla as our money transmitter during June and July 2011. We spent months attempting to contact Dwolla to resolve this dispute but were met with silence or obfuscations. To this day, though Dwolla has claimed these losses were due to chargebacks, we have not received any kind of documentation accounting for those losses. Regardless, Dwolla's contracts and advertisements from the time specifically and repeatedly highlighted a "no chargeback" policy.
As a result of these losses, TradeHill was unable to pay its employees and was forced to shut down exchange operations on February 13, 2012. We did not want to do this. We believe in Bitcoin and greatly enjoyed being involved in the community in such an integral way. Though we had hoped to continue different business operations on bitcoin.com, we were contractually obligated to return that domain name (along with bitcoin.co and bitcoin.co.nz) once we stopped operating as an exchange. As such, bitcoin.com is no longer owned and operated by TradeHill.
Yesterday, TradeHill filed a complaint for damages in the United States District Court for the Northern District of California against Dwolla and two of its officers. In the complaint, we allege that Dwolla fraudulently reversed nearly $100,000 in supposedly "credited" transactions and unjustifiably blocked an attempt by TradeHill to transfer $70,000 of its funds from Dwolla's control. Besides these direct damages, TradeHill is also claiming damages resulting from Dwolla's actions, including the harm to TradeHill's reputation and the loss of bitcoin.com, a very valuable domain.
We have received confirmation from other former Dwolla customers that they also lost money when Dwolla reversed supposedly completed and credited transactions without notice and in violation of Dwolla's own policies. If you also believe you were treated in a similar fashion by Dwolla, do not hesitate to contact us.
Jered Kenna
Chief Executive Officer
TradeHill
Twitter: @jeredkenna @tradehill
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