Dohrnii Labs Reports Blynex to Police
Learn-to-earn cryptocurrency platform Dohrnii Labs has reported cryptocurrency exchange Blynex to police in the United Arab Emirates, accusing it of unauthorized liquidation of tokens and defaulting on a loan agreement.
According to a statement , Dohrnii had entrusted 12,649.99 DHN tokens — worth over $500,000 — to Blynex. 8,650 DHN were accepted as collateral for a promised 30-day loan of 80,000 USDT, which the company says was never forthcoming.
Alleged Unauthorized Liquidation on Uniswap
Dohrnii Labs claims to have Blynex sold all 8,650 DHN collateral on Uniswap and received 149,151 USDT, causing the market price of the token to drop. Although attempts were made to withdraw the remaining 4,000 DHN tokens, Dohrnii claims Blynex has not released them.
Blynex Claims It Was “Automated Risk Management”
Blynex co-founder Mike Baskes took response by stating the liquidation was triggered by their automatic risk management system due to low liquidity and the risk of significant loss.
Baskes also stated the sale only achieved 145,000 USDT due to market depth limitations, and claimed the action was taken to protect the platform’s financial health.
Dohrnii Disputes Blynex’s Defense
Dohrnii Labs refuted this rationale, terming it “misleading.” In the view of the company, users’ funds were mishandled and the platform’s actions breached trust and agreement terms.
Legal Action and Regulatory Involvement
Dohrnii Labs stated that the UAE police report is merely a starting point in taking the matter to the next level. They are also contacting local regulators, including VARA and ADGM, and are in discussions with other affected users to consider taking collective legal action.
The company revealed that Blynex had offered 80,000 USDT and withdrawal of the remaining tokens if Dohrnii agreed to drop legal proceedings — an offer they firmly rejected:
“The 4,000 DHN tokens involved are user deposits — not assets for negotiation.”
With the dispute still open, Dohrnii Labs is looking to take Blynex to task via legal and regulatory means.
