Bold on the Chaang Noi (Goat) ช้างน้อย quote my emphasis. It is Bittalk Media Ltd, who is liable here. What we are talking about here is a corporation turning over some of its shares held in trust for one of its shareholders in exchange for some very questionable liabilities of the shareholder, without a right of offset, with multiple international jurisdictions involved and where the shareholder in question is at risk of bankruptcy! Talk about a legal hornets' nest. The legal fees to clean up this mess alone can easily bankrupt many a business start up.
I missed that but I still don't see how BitTalk is liable for anything. If Matt choses to trade some of his liabilities for the equity in BitTalk that is his choice. If he is insolvent (legal definition) and seeks bankruptcy then the tx could be voided but there is legal consequence. BitTalk could take a loss (in theory) but the odds of all that happening are essentially nil.
As long a Matt does this of his own free will and without duress, yes of course. Now what exactly is the "leverage" that Bittalk Media Ltd. has here?