The US-based subsidiary of the world’s largest crypto exchange Binance, Binance.US, is facing a lawsuit. Accordingly, the US arm of the exchange has filed a class action lawsuit for allegedly listing and illegally selling UST and LUNA altcoin assets as unregistered securities. According to the class action, Binance.US failed to comply with US securities laws. Also, the crypto exchange falsely promoted UST as “safe” and “fiat-backed” for selling UST and LUNA tokens. Plaintiff seeks to reimburse IHR damages, indemnification and trade fees and attorneys’ fees.
Binance goes to court over these 2 altcoins
Jeffrey Lockhart and other victims have filed a class action lawsuit against Binance.US and its CEO Brian Shroder. However, the case was moved to the District Court for the Northern District of California today. TerraUSD investors submitted a total of 10 grounds for action against Binance.US and its CEO. The promotion and sale of UST and LUNA as unregistered securities is the main reason. Also cited are contracts for payment of transaction fees to an unregistered crypto exchange and an arbitration scheme designed to deter retail investors from making claims.
Investors lost nearly $40 billion in the Terra crash, as we reported on Cryptokoin.com. In fact, the new lawsuit was the first LUNA and UST-related lawsuit filed in the US after the collapse. Fake advertisements by Binance.US have misled investors surrounding the Terra ecosystem. Therefore, the giant stock market indirectly caused them to lose their money. According to the lawsuit, Terra’s founder, Do Kwon, intended to launch a new Terra network. Kwon had prepared the Terra 2.0 Revival Plan to launch the LUNA 2.0 altcoin project without the UST stablecoin. Binance has again supported the LUNA 2.0 listing, although it does not consider it beneficial to its investors. Binance.US and its CEO, Brian Shroder, are now blamed for the loss of investors. In addition, investors are required to appoint a jury to return their funds.
Terra 2.0 price continues to decline
Altcoin LUNA price failed to rise despite the project’s re-creation and refurbishment. The notorious token, which failed to gain momentum, slumped to an all-time low. LUNA price is currently trading at $2.47, down about 6% in the last 24 hours. Thus, the new altcoin has dropped 87% since its listing on May 28, 2022. Meanwhile, Terra Classic could not survive the fall. According to the latest data, Terra Classic is down 10% in 24 hours. Accordingly, the token is trading at $0.00006033 at the time of writing. Many investors have lost their trust in the Terra founder and his team. Therefore, the work of the project seems quite difficult for now.
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