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Binance France and its parent company, Binance Holdings Limited, have been sued by 15 French investors for allegations of misleading business practices and fraudulent cover-ups. according to to local media coverage.
In a complaint filed on December 14, the plaintiffs allege that Binance violated French law by promoting and distributing crypto services prior to being registered with the country’s authorities. As reported by Cointelegraph, the Autorit des marchs financiers, the French financial market regulator, licensed Binance as a digital asset provider in May 2022. The license allows cryptocurrency exchanges to offer services such as asset management and cryptocurrency trading.
The complaint reportedly contains screenshots showing Binance’s social media activities prior to the license, including a Telegram channel called “Binance French.” The plaintiff also claims he lost more than 2.4 million following the collapse of TerraUSD (UST), while Binance advertises the token as backed by US dollars.
RELATED: France May Require Crypto Platforms to Obtain Licenses
In a Binance France blog post responded For questions about the case. It said the company did not conduct any promotional communications in France during the period in question, and that “the Telegram group is a global community forum” that allows users to voluntarily create and participate in channels. says there is.
Binance also answered questions about advertising Terra’s stablecoin in the country. The company said it is presenting communication that staking with Binance is “secure and not the underlying token”.The exchange also has always included market risk warnings for crypto products I pointed out that, and further strengthened the explanation.
As reported by Cointelegraph, a series of dramatic events in May 2022 led to an unprecedented drop in the price of the LUNA token and its associated stablecoin, TerraUSD (UST). It pegged and dipped below $0.30.
