Tuesday 27 December 2022 ▪ 7:00 ▪
my read – by
This end of the year is undoubtedly one of the most incredible periods for Binance. After the scandal associated with its proof of reserves, another case has just plunged the crypto platform into an unprecedented crisis. A group of 15 French investors has decided to sue Binance France and the parent company Binance Holdings Limited. The charges against the exchange are the alleged use of deceptive practices and fraudulent concealment.
15 French investors file complaint against Binance
A group of 15 French investors decided to hang out Binance Australia and its parent company Binance Holdings Limited before the courts. The plaintiffs accuse the exchange of practices that are suspicious, to say the least. The complaint was published on December 14. Essentially, the exchange would have violated the rules in force on French soil.
Advertising and distribution of crypto services without prior registration from government authorities is a violation. That’s exactly what Binance allegedly did, according to the 15 plaintiffs. Admittedly, since May 2022, Binance has had the approval of the AMF, but the facts that have been rejected are after this date. With its French license, the platform could therefore allow crypto asset storage and cryptocurrency trading. In support of their complaint, the plaintiffs use screenshots to justify Binance’s activities on the Internet before obtaining the license. In fact, the plaintiffs claim approx 2.4 million euros to the platform. They would have lost this sum after the collapse of TerraUSD (UST), a token that Binance announced was backed by the dollar.
Børsen refuted the accusations in a blog post by answering some questions. The crypto platform rejects any promotional activity before obtaining the license. Since the accusations also related to the Telegram group, the platform believes that the forum concerns all users around the world and not just the French. Furthermore, Binance specifies that access to Telegram groups is voluntary and that each user can create one if they wish.
In short, Binance also specifies that its communication with Terra was related to stake and not to the underlying tokens. The exchange also reminds that every time it includes warning messages about the risks involved in the crypto market. So far it is hard to say how far this case will go, but the next few days will be decisive.
Receive an overview of news in the world of cryptocurrencies by subscribing to our new service atdaily and weekly so you don’t miss any of the Cointribune essentials!
PhD student in financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading etc. Naturally, thanks to his articles, he participates in the daily blockchain revolution for a better democratization of DeFi.