Binance.US Faces Lawsuit Over Selling Terra Tokens

Binance.US, the U.S.-based subsidiary of the world’s largest crypto exchange Binance, has been charged with a class-action lawsuit for allegedly listing and illegally selling UST and LUNA tokens as unregistered securities.

According to the class-action lawsuit, Binance.US has failed to comply with the U.S. federal and state securities laws. Moreover, the crypto exchange falsely advertised UST as “safe” and “fiat-backed” to sell UST and LUNA tokens.

The plaintiff seeks to recover damages, consideration paid for UST, and trading fees, together with interest, as well as attorneys’ fees and costs.

Class-Action Lawsuit Against Binance.US

The class-action lawsuit has been filed by plaintiff Jeffrey Lockhart and others against BAM Trading Services Inc. (Binance.US) and its CEO Brian Shroder at the U.S. District Court for the Northern District of California on June 13.

TerraUSD’s (UST) investors have claimed 10 causes of action in total against Binance.US and its CEO Brian Shroder. These include the offer and sale of UST and LUNA as unregistered securities, contracts to pay transaction fees to an unregistered crypto exchange, and an arbitration scheme designed to discourage retail investors from filing claims.

In fact, the lawsuit marked the first LUNA and UST-related court case filed in the U.S. after investors around the world lost nearly $40 billion in the Terra collapse. The false advertising by Binance.US has misled investors surrounding the Terra blockchain ecosystem, which caused them to lose their money.

According to the lawsuit, Terra’s founder Do Kwon had come up with the Terra 2.0 Revival Plan to start a new Terra blockchain and launch its LUNA 2.0 token, without the UST stablecoin. Binance has again supported the LUNA 2.0 listing, despite considering the benefit to its investors.

Binance.US and its CEO Brian Shroder are held responsible for the loss of investors and a jury should be appointed to return the funds of investors.

Terra 2.0 (LUNA) Price Continues to Fall

The LUNA price has failed to gain momentum and dropped to its all-time low. The LUNA price is currently trading at $2.47, down nearly 6% in the last 24 hours. The new token has dropped 87% since its listing on May 28, 2022. Meanwhile, Terra Classic (LUNC) has fallen 10%, with the price currently trading at $0.00006033.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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