In February 2022, Eqonex had reportedly become the first crypto company to receive a listing on NASDAQ via a SPAC construction. Eqonex filed for judicial administration with the High Court of Singapore to restructure its debt. In February 2023, the company received a notice from Nasdaq that the company’s shares would be delisted on March 1, 2023. On 22 April 2023, the U.S. law firm Rosen Law announced a class action lawsuit against the former Binance affiliate.
Rosen Law, a global investor rights law firm, announced the filing of a class action lawsuit on behalf of purchasers of Eqonex Limited (OTC: EQOSQ) securities between March 7, 2022, and November 29, 2022. The named defendants are Eqonex, Binance, Bitfinity UAB, Jonathan Farnell, Daniel Ling, Almira Cemmell, Yu Helen Hai, and Binance founder and CEO Changpeng Zhao. The lawsuit seeks to recover damages caused by the defendants’ violations of U.S. securities laws.
According to the lawsuit, the defendants made false and/or misleading statements and failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the defendants failed to disclose to investors that: (1) the defendants were not interested in leveraging the exchange or deploying resources to strengthen that technology; (2) Eqonex had no way of paying Bifinity back pursuant to the Loan Agreement; (3) defendants had no intention of consummating a merger between Eqonex and Bifinity or Binance; and (4) as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
