Paycase sues TMX for breach of $500 million contract

Canadian crypto startup Paycase Global Corp. has filed a lawsuit against Toronto Stock Exchange operator TMX Group.
The startup accused the exchange operator of breach of contract after it backed out of an agreement to help the startup create crypto-related services and products.
Paycase files lawsuit
In its lawsuit against the exchange operator, Paycase has made a number of claims, including for lost revenue, lost opportunity and loss of reputation.
The startup is seeking $500 million in damages for losses it suffered as a result of TMX Group’s termination of the agreement.
The lawsuit was filed in Canada's Superior Court on Monday.
According to a TMX Group spokesperson, the company’s subsidiary, Shorcan Digital Currency Network, has been in talks with Paycase to try to find a mutually acceptable and workable solution.
The company is disappointed that Paycase has decided to take the matter to court. TMX plans to defend itself and they dispute the allegations made by Paycase.
The damages claim filed by Paycase is one of the largest ever filed in a crypto-related lawsuit.
The two firms have signed a ten-year partnership agreement for revenue sharing and collaboration in over-the-counter crypto brokerage.
The partnership will see both parties participate in data provision, the creation and management of cryptocurrency indices, and the sharing of index revenues.
Documents filed with the court show that Paycase and Shorcan signed a contract in March 2018. The crypto startup planned to launch an OTC trading desk and data provider in the second quarter of 2018.
Through this partnership, Paycase will gain access to TMX’s customer base and benefit from its reputation, while TMX will gain access to a network of market participants and a cryptocurrency data aggregation platform.
Paycase said TMX extended the contract deadline by two weeks on August 31.
The crypto firm claims TMX requested an extension to produce a statement of work covering services, service levels, product delivery timing and agreed matters. Paycase says it never received a statement from TMX.
Crypto startups’ feud with exchanges
Disputes are growing between crypto startups and exchanges that have pulled out of agreements that give startups the chance to raise funds through initial coin offerings (ICOs) and help them with other business activities.
In many cases, exchanges failed to deliver on their agreements, leaving startups in limbo.
If Paycase wins its lawsuit against TMX, it will set a good precedent for startups that fall victim to exchanges’ exit agreements.