The US court has dismissed the $150 million lawsuit against the crypto exchange FTX. Bitcoin Manipulation Abatement LLC had demanded $150 million from FTX for indulging in market manipulation and the sale of unlicensed securities in the US.
The plaintiffs failed to produce evidence.
The lawsuit brought by the BMA claimed that FTX had used accounts to manipulate Binace’s Bitcoin futures, which was launched mid-September. It alleged that FTX used its position to manipulate BTC prices using momentum ignition algos, with the goal of creating liquidation cascades.
@FTX_Official was just hit with a 150 mil lawsuit in California court. Charges include market manipulation, racketeering, unlicensed securities sale and more. pic.twitter.com/32PbtbvNF6
— Samuel McCulloch (@traders_insight) November 3, 2019
FTX raised $8 million in a seed funding round.
Earlier, the CEO of Binance had called this lawsuit “very far fetched.” The complaint had alleged that the FTX official ran unlicensed money transmitting business with its OTC desk, and it also attempted an attack on Binance. The exchange’s parent company Alameda called the lawsuit as utter “nuisance.” Earlier in August, the company raised $8 million in a seed funding round from the well-known crypto venture capitals, including Proof-of-capital, and Consensus Lab.
Only scanned through the parts that explicitly had the word Binance. Honestly, all seems very far fetched. We have resolved the issues long ago.
— CZ Binance (@cz_binance) November 3, 2019
If you are a cryptocurrency trader, it is highly advised to use a crypto news aggregator like cryptopanic or any other to get all the latest happening from the crypto and blockchain world at one place.
