Blockchain & Crypto

Binance exchange has been sued: here’s why

An American investor sued Binance’s US unit and its CEO.


Binance exchange has been sued: here’s why. Source:

According to Reuters, Jeffrey Lockhart, an American investor, claimed that Binance maliciously promoted trading in this stablecoin, even though it was an unregistered security. 

Moreover, Tibor Nagy from the Dontzin Nagy & Fleissig law firm is sure that Binance and other major crypto exchanges were complicit in this propaganda and such an inglorious fall.

Stablecoins are digital assets that have a one-to-one correlation to traditional fiat currencies such as the dollar, so they are pretty popular among investors looking for a safe haven during inflation or market dumps. 

However, notwithstanding all postulates, TerraUst collapsed last month breaking the one-to-one peg to the dollar, thus casting a shadow over all stablecoins. Accordingly, crypto exchanges made huge profits from offering these crypto-assets even though they could violate securities laws and cause irreparable damage to investors. 

Representatives of the crypto exchange deny these accusations and complain that the crypto exchange is registered with Financial Crimes Enforcement Network (FinCEN) and they fight against various frauds at all costs. Accordingly, the crypto exchange will defend itself by all means available to it. Earlier Binance conducted a delisting of TerraUst.

We`ve reported that the US Securities and Exchange Commission has taken a look at the TerraUst.


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