A lawsuit has been filed against Binance France and Binance Holdings Limited for claimed deceptive business practices and dishonest concealment.
The damages incurred
According to local media sources (1), 15 investors in France are suing Binance France and its parent firm Binance Holdings Limited for alleged deceptive business practices and fraudulent concealment. In a case submitted on December 14, the plaintiffs said Binance had broken French law by publicizing and offering cryptocurrency services before being registered in that nation. Binance will receive a license to distribute digital assets in May 2022 from France's financial market regulator, the Autorité des marchés financiers.
The authorization permitted the cryptocurrency exchange to provide services, including asset safekeeping and cryptocurrency trading. Screenshots of Binance's social media activity, including a Telegram channel called "Binance French," are allegedly included in the lawsuit. The plaintiffs further assert that they lost more than 2.4 million euros due to TerraUSD's (UST) collapse, despite Binance's claims that the US dollar backed the token.
Binance France (2) answered inquiries about the incident in a blog post. It states that the business made no promotional communications in France during the relevant time and explained that Telegram groups are worldwide community forums, enabling users to build and join channels voluntarily. In addition, Binance answered inquiries on Terra stablecoin promotion in the nation.
The business pointed out that its messaging portrays staking with Binance as "secure, and not the underlying tokens." The exchange added that it had enhanced its descriptions and always provided market risk cautions for cryptocurrency goods. The price of the LUNA token and its accompanying stablecoin TerraUSD (UST), intended to maintain algorithmic parity with the United States dollar, declined to below $0.30 in May 2022 as a consequence of a series of dramatic events.