Regulation
Reading time: ~2 m
Days after the U.S. Commodity Futures Trading Commission (CFTC) sued Binance and its CEO Changpeng “CZ” Zhao for alleged trading violations, a new lawsuit has been filed against the crypto exchange and three crypto influencers against 1 billion dollars to promote unregistered securities.
Law firm Moscowitz and Boies Schiller Flexner have filed a $1 billion lawsuit in the Southern District of Florida, according to Fortune, alleging that Binance is involved in trading non-registered securities and paying influencers to illegally promote such services.
The lawsuit alleges that Binance promotes the sale of unregistered securities and attracts influencers
The lawsuit alleges that Binance promotes the sale of unregistered securities and attracts influencers
The lawsuit, filed by three US citizens, indicates that the Binance cryptocurrency exchange is trading in unregistered securities, attracting influential people for this purpose.
Recall that in a past lawsuit against the Voyager platform, the law firm argued that influencers promoting “unregistered securities” were also responsible for the loss of clients. In regards to this lawsuit, it states that influencers, namely NBA Miami Heat star Jimmy Butler and YouTubers Graham Stefan and Ben Armstrong (BitBoy Crypto), are required to pay $1 billion for damages they caused to investors.
The lawsuit also states that all organizers, as well as exchanges facilitating trading in such assets, are liable for all losses of customers and investors. The lawsuit alleges that investors are not at all required to prove that they were influenced by the advertising campaign.
Lawyers plan to bring to justice as many influential people cooperating with the exchange as possible
Lawyers plan to bring to justice as many influential people cooperating with the exchange as possible
As stated earlier, the lawsuit was filed by three US citizens. However, the lawsuit states that millions of other people are also entitled to damages. In turn, the law firm is going to prosecute other influential people cooperating with the Binance cryptocurrency exchange.
Author: Vadim Gruzdev, analyst Freedman Сlub Crypto News
#Binance #sued #billion
