Three US citizens sued CZ, Binance and Influencers for promoting unregistered securities.
Binance CEO CZ is pretty busy dealing with lawsuits right now. After the lawsuit filed against him and Binance by the CFTC in the past days, a new one has been added.
CZ Sued for Promoting Illegal Securities
Just five days after Binance and its CEO Changpeng Zhao (CZ) were sued by the United States Commodity Futures Trading Commission (CFTC) for alleged trade violations, a new $1 billion lawsuit against crypto exchange CZ and three crypto influencers has been filed. opened.
On March 31, Moscowitz Law Firm and Boies Schiller Flexner filed a $1 billion lawsuit in Florida’s Southern District, alleging that Binance was involved in the trading of unregistered securities and paid influencers for the illegal promotion of such services, according to Fortune.
In the filing, when the charges were announced, it was written:
“This is a classic example of a centralized exchange promoting the sale of an unregistered security.”
Based on allegations of promoting unregistered securities, Binance and its influencers (NBA Miami Heat stars Jimmy Butler and YouTubers Graham Stephan and Ben Armstrong) are facing $1 billion in damages to investors.
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