Moscowitz Law Firm and Boies Schiller Flexner have launched a $1 billion class action case against Binance and three crypto advocates.
Another class action complaint has been filed against Binance, this one demanding $1 billion in damages, making it seem like rain for the cryptocurrency platform.
According to a Fortune story, Binance CEO Changpeng ‘CZ’ Zhao, and three crypto influencers—basketball player Jimmy Butler, Graham Stephan, and Ben Armstrong ‘Bitboy,’ are the targets of a class action case brought by the Moscowitz Law Firm and Boies Schiller Flexner.
It was claimed in the report that Binance had paid social media users to push illegal stocks that it had classified as coins. The legal companies say they spent over a year looking into the cryptocurrency exchange before deciding to sue.
The Binance cryptocurrency BNB is one of the coins at issue here that is treated as an unregulated asset. The petition claimed that the BNB fire program constitutes unlisted security because it artificially inflates the price of the asset by reducing its supply.
Three people have launched a complaint against Binance and the advocates who pushed them because they lost money dealing digital assets. It appeared from the reports that millions of individuals might be entitled to compensation in this instance.
Adam Moskowitz, of the Moskowitz Law Firm, was quoted as saying: “If an influencer promotes an unlisted security in which the influencer has a financial stake, the influencer may be responsible to anyone who purchased the assets. The trading platform itself could be held responsible.”
At the time of publication, Binance had not responded to BeInCrypto’s request for feedback. Meanwhile, this isn’t the firm’s first time bringing a class action claim against a cryptocurrency enterprise. Moskowitz also sued the owners of the defunct cryptocurrency exchange FTX, which included names like Thomas Brady and Kevin O’Leary. The company has also sued defunct cryptocurrency financier Voyager, claiming the selling of assets under the guise of its Earn Program account.
This case comes at an inopportune time for Binance, adding to the company’s legal notice. For breaking derivative dealing laws, the CFTC has recently filed a lawsuit against the exchange and CZ.
The US Department of Justice is reportedly also looking into the exchange and its creator. Binance has promised to work with authorities and has received widespread backing from the cryptocurrency industry as a result. According to research by BeInCrypto, the exchange commands a market share of more than 70 percent.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.