US Court Dismisses $150 Million Lawsuit Against Crypto Exchange FTX

Earlier this Year the Cryptocurrency 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.

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.

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.

Source : Twitter

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