Binance has received lawsuit from French investors
2022.12.26 00:01
Binance has received lawsuit from French investors
Budrigannews.com – Binance France and its parent organization Binance Property Restricted are being sued by 15 financial backers in France over supposed deceiving business rehearses and false disguise, as per nearby media reports.
In a grievance documented on Dec. 14, the offended parties guaranteed that Binance disregarded French regulations by publicizing and conveying crypto administrations prior to getting enrollment from the nation’s specialists. Cointelegraph reported that Binance has been granted a digital asset provider license by France’s Autorité des marchés financiers in May 2022. The crypto exchange was able to provide services like asset custody and crypto trading thanks to the license.
Screenshots of Binance’s social media activity prior to its license, including a Telegram channel dubbed “Binance French,” are reportedly included in the complaint. In addition, the plaintiffs assert that the TerraUSD (UST) collapse resulted in a loss of over 2.4 million euros, despite the fact that Binance advertised the token as being backed by the US dollar.
Binance France responded to inquiries regarding the case in a blog post. It noted that “Telegram groups are global community forums,” allowing users to create and join channels voluntarily, and that the company did not conduct any promotional communications in France during the disputed time period.
Additionally, inquiries regarding the promotion of Terra stablecoin in the nation were addressed by Binance. The company stated that staking with Binance is “safe, and not the underlying tokens” in its communication. The exchange also said that it always warns crypto products about market risk and has improved its descriptions.
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The price of the LUNA token and its associated stablecoin TerraUSD (UST), which was designed to maintain algorithmic parity with the United States dollar but lost its peg and plunged to below $0.30, experienced an unprecedented decline in May 2022, as reported by Cointelegraph.
