A lawsuit was filed on behalf of investors in Eqonex Limited (OTC:EQOSQ) shares over alleged securities laws violations.

San Diego, CA -- (SBWire) -- 05/01/2023 --An investor, who purchased shares of Eqonex Limited (OTC: EQOSQ), filed a lawsuit over alleged violations of Federal Securities Laws by Eqonex Limited.

Investors who purchased shares of Eqonex Limited (OTC: EQOSQ) have certain options and for certain investors are short and strict deadlines running. Deadline: June 20, 2023. OTC: EQOSQ investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Eqonex Limited (formerly Diginex Limited) was a Singapore-domiciled digital assets financial services company which operated four business lines: Custody, Asset Management, Brokerage, and the Eqonex Exchange (the "Exchange"). Notably, the Custody business was composed of Digivault, a stand-alone digital asset custodian based in the United Kingdom ("U.K.") which was the first one to be registered with U.K. Financial Conduct Authority ("FCA"), and the Exchange business facilitated the trading of products in BTC, ETH, BCH, USDC, USDT and EQONEX's alleged utility token known as EQO through a purportedly "compliant, secure, fair, and equitable platform."

On March 7, 2022, Eqonex Limited announced a "strategic partnership" with Bifinity, a payments technology company affiliated with Binance and launched that same day, which initially focused on leveraging "Digivault as an FCA regulated custodian, strengthening the technology supporting the Eqonex Exchange, and expanding Bifinity's geographical footprint through Eqonex's licensing framework." In addition, the two companies announced that they "will continue to engage in non-binding discussions to explore potential merger opportunities, subject to regulatory approval[,]" and "explore opportunities to grow EQONEX's digital asset investment solutions business." Under the partnership, Bifinity issued Eqonex Limited a $36 million convertible loan facility (the "Loan") in exchange for a right to appoint from within Bifinity, Eqonex's CEO, Chief Financial Officer and Chief Legal Officer, as well as two members for Eqonex's board.

On August 15, 2022, Eqonex Limited announced plans to exit the crypto exchange space, close the Exchange, and focus its resources on its Asset Management and Custody businesses. Despite the Exchange accounting for 79.9% of the Company's revenues in the financial year ending March 31, 2022, Defendants assured investors that day that "proactively exiting the crowded exchange space is the right decision to deliver shareholder value" and "[o]ur Asset Management and Custody business, Digivault, have already made solid progress with the additional resources that we have allocated to them recently, and we are bullish about their prospects as we become an organization focused on these high-potential business areas." That same day, in connection with the Exchange closing and in accordance with the Loan agreement, Bifinity granted Eqonex Limited a waiver for the cessation of a major business and Eqonex agreed to increase its share charge of Digivault under the loan agreement from 24.9% to 100%.

Then, on November 21, 2022, Eqonex Limited disclosed that it was "currently in breach of certain provisions of the Loan Agreement and consequently seeking a waiver from Bifinity on such breaches" and "[b]ased on the working capital forecast prepared by management of the [Company], the financial resources available to the [Company] as of March 31, 2022 and up to [November 21, 2022] may not be sufficient to satisfy the working capital requirements of the [Company] for a period of twelve months from th[at] date … which may cast significant doubt on the Group's ability to continue as a going concern."

Finally, before markets opened on November 29, 2022, Eqonex Limited announced receipt of The Nasdaq Stock Market LLC ("NASDAQ")'s Listing Qualifications department's determination that the Company's securities will be delisted from NASDAQ and that trading in those securities will be suspended at the opening of business on November 30, 2022.

Shares of Eqonex Limited (OTC: EQOSQ) declined to $0.017 per share on March 31, 2023.

The plaintiff alleges on behalf of purchasers of Eqonex Limited (OTC: EQOSQ) common shares between March 7, 2022 and November 29, 2022, inclusive (the "Class Period") and/or unregistered Eqonex Limited securities between April 8, 2021 and the present, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Defendants failed to disclose to investors that Defendants were not interested in leveraging the Exchange or deploying resources to strengthen that technology, that Eqonex had no way of paying Bifinity back pursuant to the Loan Agreement, that Bifinity and Binance had no intention of consummating a merger between Eqonex and Bifinity or Binance, and that 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.

Those who purchased shares of Eqonex Limited (OTC: EQOSQ) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.