how Singapore-based blockchain project MinePlex…

Defamation cases against media outlets happen all over the world but the legal practice varies hugely. Apart from geographical differences, the industry also remains a factor. Projects in new fields like blockchain are frequently exposed to debatable practices in journalism. But the blockchain market maturity brings potential defamation cases in the response to such practices.

The Singapore-registered cryptocurrency company MinePlex is ready to take legal action against VTV Channel for trying to damage the blockchain project’s reputation. The company contacted the law firm and sent an official letter demanding issuing the rebuttal to the false allegations presented on March 9, 2023.

The issue started when the national Vietnamese broadcaster channel VTV published on their website a video and an article titled “The electronic bank self-proclaimed as MinePlex operates illegally” that blamed the company for operating activities, seducing participants to join what journalists presented as a pyramid.

First of all, per MinePlex’s letter, the company “has full legal bases and operating conditions”. The firm is registered in Singapore as MINEPLEX PTE. LTD. under the registration number 202025952D. The transparency of their operations can be also demonstrated by the successful pass of the KYC team check from the international company CertiK. 

Secondly, MinePlex insists that the company never claimed to be a traditional bank. In fact, from the start of the project they continued to inform customers about the fact that they partner with traditional banks to offer financial-related services such as payment cards to their customers. For example, on February 25, MinePlexannounced a strategic partnership with a major Brazilian bank and clearly stated that MinePlex users will get access to the services provided by the bank. 

Thirdly, in the letter, the company explained that neither did MinePlex promise profits. They point to the journalist’s trick that sadly became quite frequent – taking the phrase out of the context. Indeed, during the interview, Fyodor Bogorodsky, the MinePlex CFO, mentioned the possible growth of the PLEX token to $1,500. But the context of the conversation clearly demonstrated that it was not and could not be the promise to the users.

Finally, MinePlex also took the accusations of being a Ponzi scheme very seriously. The pyramid structure assumes the lack of product but MinePlex has already launched the whole ecosystem, as well as published the tech details of the algorithms on which it is based:

“Already 2.5 years ago, the MinePlex technology was recognized as unique in the world media. The MinePlex blockchain is based on the work of two tokens. One mines the other. This is written in a mathematical algorithm and the company cannot interrupt this process in any way”

The MinePlex case happened despite the general media acceptance of the project. Nasdaq journalists put MinePlex on the list of top projects this year. Earlier, the project received high rankings among blockchain projects by International Business Times, Seeking Alpha, and other media outlets.

The MinePlex management shared their disappointment that the VTV channel “has neglected the basic principles of journalism and didn’t verify and clarify the content before publishing” and asked to issue clarification to the readers.

While it is early to draw conclusions about the case, one thing becomes clear. In the beginning, blockchain projects were in the legal grey zone and many took advantage of that. Now the blockchain market matured to the point when it is ready to act using traditional instruments and legal instruments to safeguard their reputations.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.