Binance, one of the largest cryptocurrency exchanges, faced a class action lawsuit on July 11, 2022 in the United States District Court for the Northern District of California.
This was the first lawsuit filed by US-based Roche Freedom LLP, alleging that Binance misled Terra network investors by presenting Terra’s dollar-based UST as more stable than it actually was.
Binance misled Terra investors
Furthermore, the lawsuit also claims that Binance.US is not a chartered organization and carelessly promoted UST as a secure stablecoin, which it was not. However, the company has denied the allegations and stated that Binance.US adheres to all applicable regulations.
Before Roche Freedom can prove its allegations against Binance.US in court, the company must convince US District Judge Jacqueline Scott Corley that the lawsuit belongs to the courts, rather than to the courts. arbitration proceedings. Arbitration proceedings are a procedure in which a dispute is resolved through the intervention of a third party, rather than a court.
On January 4, 2023, Roche Freedom filed a brief against Binance’s decision to force an arbitration proceeding, which Binance filed in November 2022. The brief claims that Binance has not provided any evidence that crypto investor Michiel Nuveen, who is one of the arbitrators in the case, saw or accepted the arbitration clause.
Furthermore, Roche Freedom claims that arbitration proceedings are fundamentally unfair to users or consumers, as they lead to complex proceedings and allow Binance to hang on to court proceedings.
Further proceedings will depend on what Binance has to say and what terms both parties can agree to.
This post Binance Faces Lawsuit for Misleading Terra Investors
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