California filed a class-action suit against Binance US. It claims that Binance US misled investors by selling unregistered securities. Roche Freedman LLP was the lawyer who filed the case. The law firm has been known for filing high-profile cryptocurrency lawsuits over the past few years. Binance US was accused of marketing terrausd, (UST), as a solidly fixed stablecoin linked to the U.S. dollars.
Class-Action Lawsuit Filed Against Binance US Over the Terra UST Collapse — 2,000 Plaintiffs Say They Were Misled by the Exchange
The lawsuit against Binance US, a U.S.-based trading platform Binance US was served Monday. It accuses Binance US of misleading investors and selling unregistered securities. The accusations derive from last month’s Terra UST de-pegging incident and the entire Terra Classic blockchain ecosystem getting obliterated.
Roche Freedman LLP is the law firm responsible for the lawsuit. It was also involved in Kleiman vs. Wright, as well as other notable crypto litigations.
Binance US was accused by the lawsuit of being uncommitted to its customers, allegedly for not adhering to U.S. federal or state securities laws (U.S. terrausd) when it listed Terrausd (UST). The lawsuit claims UST was sold as a “safe” asset and as “an early supporter of [Terraform Labs], Binance US is intimately familiar with UST and LUNA.”
The lawsuit shows an advertisement showing Binance offering locked staking on UST and it says “high yield, safe & happy earn.” Another advertisement shown in the lawsuit calls UST “fiat-backed.” The class action says that Binance US failed to disclose that “UST is in fact a security” and Binance “refused to register” with the U.S. Securities and Exchange Commission (SEC) as a “securities exchange or as a broker-dealer.”
“Binance US’s failure to comply with the securities laws, and its false advertisements of UST, have led to disastrous consequences for Binance US’s customers in May 2022, in the span of just a few days, UST lost essentially all its value — a loss of approximately $18 billion,” the lawsuit alleges. Binance claimed that it removed false advertisements following the UST crash, however the suit notes that Binance continues to sell Terra-based securities.
According to the lawsuit:
Binance US’s parent company blithely added insult to injury when, on May 31, 2022, it began selling Luna 2.0 — a new token which, just like LUNA, is centrally controlled by [Terraform Labs].
The Binance Lawsuit is just the beginning of a class-action lawsuit aimed at Terra Investors, says Whistleblower Fatman
Fatman, an internationally recognized whistleblower who helped bring the suit to a successful conclusion by assembling 2,000 Terra investors. Fatman announced that there will be another class action suit to help grieving Terra investor’s. Fatman posted on Monday about the Binance US class action.
“We begin today,” Fatman tweeted. “Partnered with one of the law firms I’m working with, Roche Freedman, our group of UST victims are bringing a class action against Binance US for tortious deceit [and] more. More. [and] prey on the weak, there are consequences.”
How do you feel about Binance US’s lawsuit and its alleged connection to Terra UST? Please comment below to let us know your thoughts on this topic.
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