Just five days after Binance and its CEO Changpeng 'CZ' Zhao was sued by the United States Commodity Futures Trading Commission (CFTC) for alleged trade violationsA new $1 billion lawsuit has been filed against the cryptocurrency exchange, CZ, and three cryptocurrency influencers for promoting unregistered securities.
On March 31, the law firm Moscowitz and Boies Schiller Flexner filed a $1 billion lawsuit in the Southern District of Florida alleging Binance's involvement in unregistered securities trading and paying influencers for illegal promotion. of said services. according to Fortune. As he explained the charges, the filing read:
"This is a classic example of a centralized exchange promoting the sale of an unregistered security."
In a previous lawsuit against Voyager, the law firm alleged that influencers who promote "unregistered securities" are liable for customer losses. Based on similar claims, Binance and influencers, Miami Heat NBA star Jimmy Butler and YouTubers Graham Stephan and Ben Armstrong (BitBoy Crypto), are challenged to pay $1 billion for damages caused to assets. investors.
โWe have been investigating these same unrecorded security issues against Binance for over a year,โ the lawsuit added. Promoters and exchanges that facilitate trades in such assets "would be liable" for client losses. In addition, the lawsuit claims that investors do not have to prove that they were influenced by the ads.
Although three US citizens brought the case, the lawsuit alleges that "millions" of people could be eligible to receive damages. The law firm also plans to bring more Binance influencers to the lawsuit in future filings.
Related: Binance vs. CFTC: Latest Court Battle Could Upset US Crypto Landscape
CZ and other senior Binance executives have been hide crypto exchange ties to Chinaclaims a Financial Times report.
"We no longer publish our office addresses...people in China can directly say that our office is not in China," Zhao was reported as saying in a company message group in November 2017.
However, speaking to Cointelegraph, Binance confirmed that the company โdoes not operate in China nor do we have any technology, including servers or data, based in China,โ adding:
โWhile we had a customer service call center in China to serve Mandarin speakers from around the world, employees who wished to remain with the company were offered relocation assistance beginning in 2021.โ
According to Binance, its 8,000 full-time employees live in Europe, the Americas, the Middle East, Africa, and Asia-Pacific.
Magazine: US Enforcement Agencies Are Increasing Pressure on Crypto-Related Crimes
Post navigation
