Lawsuits have been launched against Binance.US by investors who purchased TerraUSD (UST) and LUNA via the Binance.US platform. In a class-action lawsuit filed Monday in California’s Northern District, investors allege that the exchange sold unregistered securities in UST and LUNA to investors by deceiving them into purchasing the tokens.
On behalf of investors who were deprived of their assets during the earlier UST/LUNA concocted collapse, the law firms Dontzin Nagy Fleissig and Roche Freedman filed the legal lawsuit. According to the complaint, because Binance.US is not registered as a broker-dealer in the United States, it is violating the country’s securities laws.
The petitioners in this case claimed that the crypto exchange was actively promoting a risky project in which the parent company had previously invested. When the lawsuit was filed, it became clear that the exchange not only helped and backed a security token, but that its parent company also listed LUNA 2.0’s second version after the first one failed.
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The market capitalization of Litecoin (LTC) fell by more than $2 billion in May.
Besides this, the case alleged that the exchange was falsely claiming that the UST was backed by the US dollar, which has been the subject of much criticism since the fall. Consumers in the United States of America have suffered irreparable harm as a result of “Binance.U.S.” failing to comply with securities laws and the UST’s deceptive advertising.
Plaintiffs in this lawsuit have asked for a jury trial for the full scope of the charges. In the past, Roche freedman’s founder, Kyle Roche, has urged LUNA investors to get in touch with the company if they buy the cryptocurrency on one of the major US exchanges. In this approach, the legal action against Binance might be launched before several others.
While South Korean investors filed a lawsuit against the Terra project’s creators in the week that the project went bankrupt, the most recent lawsuit against Binance.
The United States is regarded as the first in North America. According to a previous Twitter post by the law firm involved in the legal matter, other crypto exchanges registered in the United States may be subject to similar litigation in the near future.