Binance, CEO CZ and Several Influencers Hit With $1B Lawsuit

• A class action lawsuit was brought by the Moscowitz Law Firm and Boies Schiller Flexner.
• The legal firms had worked together on a class action case against Voyager and FTX.

Binance, a leading cryptocurrency exchange, and its CEO, Changpeng Zhao (CZ), have lately faced a number of difficulties. Only a few days after the Commodity Futures Trading Commission (CFTC) filed an action against Binance, the cryptocurrency exchange is embroiled in another high-profile legal dispute.

On the evening of March 31st, a class action lawsuit was brought by the Moscowitz Law Firm and Boies Schiller Flexner, where David Boies is a partner. The defendants in the lawsuit include Binance’s US division, CEO CZ, three of the exchange’s key international organizations, NBA star Jimmy Butler of the Miami Heat, and two other crypto influencers.

Same Old Allegation

The latest lawsuit is based on the same basic allegation that has been echoed by U.S. authorities: that the exchange was enabling the trade of cryptocurrencies that are deemed unregistered securities, and that a small number of self-proclaimed “finance gurus” on social media promoted the exchange for financial gain.

In addition to Butler, the formal lawsuit names notable crypto proponents Ben Armstrong (as “BitBoy Crypto”) and Graham Stephan (with an astounding 4 million followers on YouTube). The legal firms had worked together on a class action case against Voyager, an insolvent company, and two lawsuits related to the demise of FTX.

The first of these later assaults targeted celebrities who were paid handsomely to promote the cryptocurrency exchange. Comedian Larry David, basketball stars Shaquille O’Neal and Steph Curry, and football legend Tom Brady were among those mentioned.

The price of Bitcoin and other cryptocurrencies is on the rise despite the ongoing feud between authorities and the crypto sector.

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