A collective lawsuit was filed against the Binance.USthe American arm of cryptocurrency exchange global Binanceon the sale of EarthUSD (UST) and MOON for buyers in the United States.
Registered today (13) in the Northern District of California, the lawsuit alleges that Binance.US sold unregistered securities to the claimants, deceiving them in the process.
The process also points out that the company’s business model Binance.US is based on “the illegal permission to sell unregistered securities to the greatest possible number of investors in the United Statesas often as possible.
In conjunction with this, the plaintiffs also allege that Binance.US promoted the sale of UST and participated in token distributions, which were “set up to increase trading volume”.
The 72-page complaint alleges that Binance.US listed and sold USTdespite the fact that it is not registered as a broker, which is a violation of US securities laws, according to the lawsuit.
A spokesperson for the crypto exchange told The Block that MOON was never listed on the platform Binance.US. he also said that UST was delisted from the platform yesterday (12) night.
“Binance.US is registered by the Financial Crimes Combat Network (FinCEN) and adheres to all applicable regulations. These charges are without merit, and we will vigorously defend ourselves,” the spokesperson said.
The court case was communicated after the “death spiral” of USTthe algorithmic stablecoin of Earthwhich lost more than $40 billion in just a few days.
The plaintiffs in the suit demanded a trial by jury for all matters deemed to be subject to trial.
SEC victory over Terraform Labs opens doors
for research on TerraUSD (UST)
Binance.US could be the 1st target of lawsuits on Earth
The class-action suit, led by law firms Roche Freedman and Dontzin Nagy & Fleissig, could be the first in a series of legal claims prompted by the collapse of USTin May.
If successful, the process could do what governments have so far failed to do: set clearer parameters on the legal status of decentralized finance (DeFi) and who is to blame when something goes wrong.
One of Roche Freedman’s partners, Kyle Roche, said on Twitter on Monday:
“If you bought MOON or UST at Coinbase, KrakenBinance or Gemini, please contact [email protected] . My company is coordinating an effort to help those who have lost funds with the recent collapse of #earth and #luna.”
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
