French investors sue Binance for losses of more than 2.4 million euros
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| crypto news |
Binance France and Binance Holdings Limited are indicted for alleged misleading business practices and fraudulent concealment.
Binance France and its parent company Binance Holdings Limited are being sued by 15 investors in France for alleged misleading business practices and fraudulent concealment, according to local media.
In a lawsuit filed on December 14, the plaintiffs alleged that Binance violated French laws by advertising and distributing crypto services before receiving registration from authorities in the country. As Cointelegraph reported, France's financial market regulator granted Binance a license as a digital asset provider in May 2022. The license allowed the exchange of cryptocurrency to offer services such as asset custody and cryptocurrency trading.
Screenshots were included in the complaint showing Binance's social media activity prior to its licensing, including a Telegram channel called "Binance French." The plaintiffs also claim to have lost an estimated amount of more than €2.4 million as a result of the collapse of TerraUSD (UST), while Binance announced that the token is backed by US dollars.
In a blog post, Binance France answered some questions about the issue. According to it, the company did not carry out any promotional communication in France during the period in question and stated that 'Telegram groups are global Community forums', thus allowing users to create and join the channels on a voluntary basis.
Binance has answered questions regarding the announcement of the "Terra stablecoin" in the country. The company then indicated that its communications present “stacking” with “Binance” as safe, not the underlying tokens. The exchange also noted that it always publishes market risk warnings for crypto products, and has enhanced its descriptions further.
As Cointelegraph reported, a series of dramatic events in May 2022 led to an unprecedented drop in the price of the LUNA token and the TerraUSD "UST" stablecoin pegged to the LUNA token. TerraUSD "UST" was designed to maintain algorithmic parity with the US dollar, but it lost its worth. to about $0.30.
