- The matter is apparently being handled by Roche Freedman LLP.
- Binance is accused of misleading investors about Terra in a 72-page complaint.
UST and LUNA, two of Terra’s assets, went bust last month, causing major market harm. Cryptocurrency exchanges have to pay the price for monitoring and investigating everyone involved in the initiative. Binance, the world’s biggest cryptocurrency exchange, seems to have slipped beneath the authorities’ notice, but customers are now retaliating.
Misleading Investors Charges
Around 2,000 Terra investors chose to sue Binance’s U.S. subsidiary. The first case against Terra to be brought in a U.S. court was in North California when a class action complaint was launched. The matter is apparently being handled by Roche Freedman LLP, a US-based law company.
Binance is accused of misleading investors about Terra in a 72-page complaint. False advertising was the principal cause of investors losing money in this case. Many people were surprised to learn that LUNA had a near-zero success rate. According to Binance.US, the stablecoins auction and airdrops of assets “designed to increase trading volume” were slammed.
An algorithmic stablecoin UST’s de-pegging led to a whole network’s demise. It was so devastating that many investors spoke about how they were desperate and ruined. After Terra investors sued Do Kwon in South Korea, exchanges worldwide expected legal action against them. Binance, on the other hand, was accused of being unregistered and would have been surprised.
For this reason, Binance has developed a platform only available to users in the United States. However, now it seems that the lawsuit is aimed against the platform’s very survival. The crypto market has faced a severe bloodbath amid prices of all currencies falling double-digit.
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