Blynex Accused of Unlawful Liquidation of DHN Token

Learn-to-Earn platform Dohrnii Labs has accused the UAE-based cryptocurrency exchange Blynex of liquidating its tokens without permission and failing to disburse a promised loan, according to Cointelegraph.

The aggrieved party claims to have deposited 12,649.99 Dohrnii (DHN) tokens worth over $500,000 on the exchange. On March 23, Dohrnii Labs used 8,650 DHN as collateral for a 30-day loan in exchange for 81,000 USDT, but never received the funds.

? Transparency Update ?

We’ve filed a police report in the UAE against @Blynexex and affiliated individuals.

Nearly 24h ago, our team attempted to withdraw 4,000 DHN — the transaction remains blocked with no response.

We never received a loan, yet @Blynexex liquidated our…

— Dohrnii Labs (@Dohrnii_io) March 24, 2025

Additionally, Blynex liquidated the 8,650 DHN position on Uniswap, obtaining 149,151 USDT and causing a decline in the token’s market value, Dohrnii Labs stated.

“Attempts to withdraw the remaining 4,000 DHN were unsuccessful,” they added.

Blynex co-founder Mike Basques commented that the liquidation was part of their “automated risk management system.”

We have reviewed the ongoing situation thoroughly and must set the record straight once again regarding the recent allegations made by Dohrnii Labs.

Blynex has not only acted within the bounds of the law but has consistently attempted to resolve this matter fairly and amicably.… pic.twitter.com/DBnZajszCv

— Blynex Platform (@Blynexex) March 24, 2025

“Since the 8,650 DHN were collateral, the system monitored the token’s liquidity and market conditions in real-time. When it became clear that the DHN token was experiencing liquidity issues and market volatility, our system automatically liquidated the collateral,” he explained.

As a result of the liquidation of 8,650 DHN, the exchange received 148,160 USDT.

“Claims by Dohrnii Labs that we liquidated nearly twice the value of their loan are categorically false. We acted based on the current market value of the DHN token,” Blynex emphasized.

Dohrnii Labs representatives were not convinced by the exchange’s explanations. They have already filed a police report in the UAE and expressed readiness to take the matter to court.

According to Cointelegraph, Blynex attempted to settle the issue by offering them 80,000 USDT and allowing the withdrawal of 4,000 DHN, provided a settlement agreement was reached. However, Dohrnii Labs deemed such a deal “unacceptable” and rejected it.

“The 4,000 DHN in question are user deposits, not operating assets. The right to withdraw these funds should never be up for discussion,” the platform team emphasized.

Back in late January, the UAE-based cryptocurrency market maker CLS Global pleaded guilty to facilitating wash trading and market manipulation in favor of the NexFundAI token, created by the FBI to detect fraud.