Slarskey LLC secured a total victory on multiple key motions on behalf of its client Guang Huang and cryptocurrency asset management firm BBShares, which sought to hold two former directors of the firm, and Huang’s former partners, liable for substantial harms suffered by Huang and BBShares. Slarskey partners Renee Bea and Adam Hollander represented Huang and BBShares. 

Huang alleged that his partners in BBShares, Individual Defendants Jingjing Zhou and Hongtao “Jason” Qiao, defrauded Huang and breached their fiduciary duties to Huang and to BBShares. Among other claims, Huang alleges that the Individual Defendants used an entity they formed and control, BB Matrix Holdings Pte. Ltc., to improperly dilute Huang’s interest in BBShares, all the while engaging in extensive and improper self-dealing and siphoning of BBShares’ assets and equity for their own benefit.

On May 11, 2023, Justice Linda S. Jamieson of the Supreme Court of the State of New York ruled entirely in Huang’s favor on multiple motions, enabling Slarskey to proceed in its efforts to secure a meaningful recovery to Huang and BBShares. First, the Court granted Huang’s motion to file an amended complaint adding BB Matrix as a defendant and to bolster allegations regarding, “the individual defendants’ creation of BB Matrix to carry out their alleged scheme of ‘diverting investment’ away from BBShares and ‘misappropriating BBShares Capital’s value.’” In reaching that conclusion, the Court rejected Defendants’ argument that the amended complaint lacks merit.

Second, the Court rejected Defendants’ demand that Huang post a $1 million security in connection with the case, and ruled that the case may move forward without any security. Defendants had argued that a security was required because Huang’s interests in BBShares fell below a statutory threshold amount. The Court rejected that demand, crediting Slarskey’s argument that Huang’s interests fairly exceed the statutory threshold.

“We are proud of our work on this case on behalf of Huang and BBShares," noted Bea. “We look forward to continuing to prosecute fraudulent actions and holding wrongdoers accountable for their harm in the cryptocurrency industry and beyond,” added Hollander.