DHN Token Lockup Causes Conflict Between Dohrnii Labs and Blynex
Date: 2025-03-25 Author: Gabriel Deangelo Categories: BUSINESS
Learn-to-Earn platform Dohrnii Labs has claimed that UAE-based exchange Blynex liquidated DHN tokens without permission and failed to provide the agreed loan. According to the company, 12,649.99 DHN tokens were deposited on the platform, with a total value exceeding $500,000. Of this amount, 8,650 DHN were used as collateral to obtain a loan of 81,000 USDT for a period of 30 days. However, the promised funds never arrived in the account.
Representatives of Dohrnii Labs claim that not only did the exchange fail to provide the loan, but it also sold the collateral tokens on Uniswap, receiving 149,151 USDT in the process. This operation, according to them, caused a significant drop in the token’s market price. In addition, attempts to withdraw the remaining 4,000 DHN were unsuccessful.
Mike Basques, co-founder of Blynex, responded to the allegations by claiming that the exchange’s actions were the result of an automated risk management system. He explained that the algorithm monitors market volatility and liquidity of tokens, and when a certain risk threshold is reached, an automatic liquidation occurs. As a result of this procedure, the exchange received 148,160 USDT.
According to Basques, Dohrnii Labs is wrong to claim that the liquidation brought in almost twice the amount of the loan. He noted that the exchange’s actions were in line with the market valuation of DHN at the time of the transaction and did not go beyond standard protocols.
Despite these explanations, Dohrnii Labs stood by its position and filed a complaint with the UAE police. The company is also considering filing a lawsuit.
According to Cointelegraph, Blynex offered a compromise: to pay 80,000 USDT and allow the withdrawal of 4,000 DHN in exchange for settling the dispute. However, Dohrnii Labs rejected this offer, emphasizing that these tokens are user deposits, not native assets of the platform, and cannot be subject to trade.
The incident increases the focus on transparency and user protection mechanisms on cryptocurrency platforms. This is not the first case in the region: in January, CLS Global admitted guilt in the FBI investigation of market manipulation, which also undermined confidence in the regulation of the industry in the UAE.
