Camp BX was a cryptocurrency exchange in Atlanta, Georgia that is becoming well known not because of its cryptocurrency exchange protocols, but because it is one of the first to be sought after by most of its customers.
Camp BX is getting “federal” attention
Camp BX doesn’t have a long or stellar history. The company only existed for a while, but the company, when it went bankrupt, decided to keep all of its customers’ money and not return anything. This raised serious red flags among everyone doing business with the company, and it wasn’t long before class action was launched.
All this happened about four years ago. Many customers have so far failed to recover their bitcoin units, although it now appears that the court has finally ruled in their favor. A federal jury in Atlanta has ruled that all customers who have been cheated of their earnings by Camp BX must have their funds returned immediately.
For several years, approximately 70 customers have exchanged bitcoins and other cryptographic units through Camp BX. The company’s physical address was a PO box at a UPS store in Roswell, although the company is believed to have conducted most of its business remotely or online. Attorney John Richard explained in an interview:
In this case, the exchange worked well for several years.
However, that finally changed in 2017 when several of the customers in question lost access to their bitcoin accounts. This is often known as a tug of the rug in the crypto space. A company or project gets money through investors or clients from all corners of the world. Just when it looks like the money is going to be put to good use, executives close up, so to speak, and walk away with all the funds. It’s a classic case of fraud, and it happens a lot in the field of digital currencies.
A year after this all began, the Georgia Department of Banking and Finance sent a cease and desist letter to Camp BX for allegedly carrying out unlicensed financial transactions. Several customers were also chatting on online forums talking about how they couldn’t access their money. One man, Jay Daniel, had around $250K worth of BTC that he couldn’t access. He says:
I went to the site, couldn't make any transactions and was like, 'Oh shit'. They held our property completely, they didn't answer reasonable questions, and we literally had to open the first bitcoin case in federal court to get our money back.