Binance France and Binance Holdings Limited are being sued for fraudulent trading and privacy practices.
Binance France and its parent company Binance Holdings Limited are being sued by 15 investors in France for alleged trading fraud and secrecy, according to local media.
In a complaint filed in December. On January 14, plaintiffs alleged that Binance violated French law by advertising and distributing crypto services before receiving registration from the country’s authorities.
As reported by Cointelegraph, the French financial regulator, the Autorité des marchés financiers, authorized Binance as a digital asset provider in May 2022. The license allowed crypto exchanges to offer services such as asset holding and crypto trading.
The complaint contains screenshots showing Binance’s social media services before it was licensed, including a Telegram channel called “Binance French”. The plaintiffs also claim that they have lost more than €2.4 million following the collapse of TerraUSD (UST) when Binance announced that the token was backed by the US dollar.
In a blog post, Binance France responded to questions about the case. According to him, the company did not do any social media in France at the time of the speech and said that “Telegram is a global community”, thus giving users the opportunity to create and participate in the channel themselves.
Binance also answered questions about the launch of Terra stablecoin in the country. The company said that its communication shows staking on Binance as “a security, not an underlying token.” The amendment also stated that it still includes market risk warnings for crypto products and has strengthened its definition. As reported by Cointelegraph, a series of dramatic events in May 2022 led to an unprecedented drop in the price of the LUNA token and the stablecoin TerraUSD (UST), which was designed to maintain an algorithmic system with the US dollar, but he lost it pack and put under $0.30.
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