Alameda Research, FTX’s parent company has called out the $150 million lawsuit slapped on it for manipulating markets as utter ‘nuisance’. The class-action is based on a September 15 event, in which the smaller futures exchange attempted an attack against Binance Futures, with the aim of achieving liquidations.
Alameda Research Calls Lawsuit Baseless
Soon after the filing circulated on social media, more specifically Twitter, Alameda Research published an inflamed response. FTX was not at fault, and the plaintiff will not be able to prove any wrongdoing, Alameda commented. The complaint has also not been officially served to Alameda Research or FTX yet and was immediately made public.
The lawsuit was a form of trolling, with no substantial evidence, beyond repeating well-known conspiracies about price manipulation, Alameda commented.
The Binance price-setting mechanism, which used an index, forestalled the intended liquidations. But the case was noted by Binance’s leader, Changpeng Zhao. And he was not the only one that spotted the FTX misbehavior. The plaintiff was serious in claiming market manipulation and unfair business practices. Later, the misunderstanding between Binance and FTX was cleared, but then Bitcoin Manipulation Abatement, LLC appeared out of the blue with its dramatic claims.
@FTX_Official conducted an “attack” on Binance’s newly launched futures market on Sep 15, 2019. Unfortunately for FTX, Binance prices according to an index, and no positions were liquidated. pic.twitter.com/PPtLXvOo3h
— Samuel McCulloch (@traders_insight) November 3, 2019
There is currently no corporate information on the plaintiff “Bitcoin Manipulation Abatement, LLC”, suggesting a group of persons, or an intention to hide behind anonymity.
The event was just a blip on the radar, with Binance futures going on to set a series of records in trading activity.