Eqonex Limited Securities Litigation

On April 21, 2023, Freedman Normand Friedland LLP (FNF) filed a class action lawsuit in the U.S. District Court for the Southern District of New York (Case No. 23-cv-03346) against Eqonex Limited (f/k/a Diginex Limited), Binance Group, Bifinity UAB, certain Eqonex officers and directors, and Binance’s CEO, alleging violations of the Securities Exchange Act of 1934 (Sections 10(b), 20(a), Rule 10b-5) and the Securities Act of 1933 (Sections 5, 12(a)(1)). The lawsuit covers two classes: (1) purchasers of Eqonex securities between March 7, 2022, and November 29, 2022 (Class Period), and (2) purchasers of unregistered EQO securities between April 8, 2021, and April 20, 2023 (Unregistered Securities Class Period). Eqonex, a Singapore-based digital assets firm, operated Custody (via U.K.-based Digivault), Asset Management, Brokerage, and the Eqonex Exchange, trading BTC, ETH, and EQO tokens. On March 7, 2022, Eqonex announced a strategic partnership with Bifinity (a Binance-affiliated payments company), including a $36 million convertible loan, Bifinity’s right to appoint Eqonex’s CEO, CFO, CLO, and two board members, and non-binding merger discussions. The complaint alleges defendants misled investors by: (1) lacking intent to strengthen the Exchange, which generated 79.9% of 2022 revenue; (2) concealing Eqonex’s inability to repay the loan; (3) misrepresenting merger prospects; and (4) making misleadingly positive statements about Eqonex’s prospects. On August 15, 2022, Eqonex announced the Exchange’s closure, focusing on Custody and Asset Management, causing an 18% share price drop to $0.637 by August 17. On November 21, 2022, Eqonex disclosed loan agreement breaches and insufficient working capital, raising “significant doubt” about its viability, leading to a 48% share price drop to $0.141. On November 29, 2022, NASDAQ announced Eqonex’s delisting, effective November 30, causing a 34% share price drop to $0.093. A related class action was filed by Rosen Law Firm, covering similar periods (March 7, 2022–November 29, 2022, and April 8, 2021–April 20, 2023). On September 24, 2024, Judge Gregory H. Woods dismissed the FNF lawsuit, ruling that plaintiffs failed to show Binance’s motive to collapse Eqonex, though plaintiffs were granted leave to re-plead. The case remains ongoing as of May 20, 2025, pending potential amended pleadings.