US Court Dismisses $150M Lawsuit Against Cryptocurrency Derivatives Exchange

The U.S. court has reportedly dismissed the law case for $150 million against the popular cryptocurrency derivatives exchange, FTX. The initial reasoning behind the lawsuit was market manipulation and unlicensed securities sales, but the court has not found any solid grounds to continue with the lawsuit.

Cryptocurrency Exchange FTX Exonerated

Earlier this year, the cryptocurrency derivatives exchange FTX was accused of the sale of unlicensed securities in the U.S. and market manipulation. It resulted in a lawsuit, filed by a company called “Bitcoin Manipulation Abatement LLC,” and it required $150 million to be paid in punitive and exemplary damages. Moreover, the claim said that FTX attempted the market manipulation attack on the largest cryptocurrency exchange by volume, Binance.

According to a recent report, the judge of the U.S. district court in California has granted the motion to dismiss filed by the company running FTX – Alameda Research LLC. The court order was published on Thursday, and it reads:

“Defendant Alameda Research LLC’s motion to dismiss Bitcoin Manipulation Abatement LLC’s Amended Complaint in the above-captioned action came on regularly for hearing before the Court on February 13th, 2020. After considering the papers submitted by the parties and the argument of counsel, the Court finds that plaintiff has failed to comply with the requirements of Fed. R. Civ. P. 9(b) or 8(a)(2), and that dismissal is warranted under Fed. R. Civ. P. 12(b)(1) and 12(b)(6). Accordingly, Alameda Research LLC’s motion to dismiss is granted, and the Amended Complaint is dismissed in its entirety with prejudice.”

Changpeng Zhao Reaction

Binance’s Founder and CEO, Changpeng Zhao, confirmed the suspicious event taking place on the exchange, calling it an attack.

At the time, Bitcoin was trading at around $10,325; however, CZ showed a chart noting in a matter of seconds, the price of the largest crypto plunged to $10,024. He was quick to reassure Binance users that “NO ONE was liquidated, as we use the index price (not the futures price) for liquidations.”

Furthermore, CZ continued the thread, saying that this was the second similar attempt from the same alleged attacker. However, after a supposed chat with him, Zhao dismissed the chance of being an actual attack purposely carried on Binance’s platform.

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