$1B Lawsuit Filed Against Binance, CZ for Promotion of Unregistered Securities

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A recent $1 billion complaint has been brought against Binance, CZ, and three crypto influencers for marketing unregistered securities amid several charges against the well-known provider of services for digital assets.

As per the report by Fortune, a $1 billion complaint claiming Binance’s engagement in trading unregistered securities and paying influencers for the illegal marketing of such services was filed on March 31 in the Southern District of Florida by the Moscowitz Law Group and Boies Schiller Flexner. 

According to the lawsuit: 

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“This is a classic example of a centralized exchange, which is promoting the sale of an unregistered security.”

The complaint continued, “We’ve been investigating these same unregistered security issues against Binance for over a year.”

Dark Clouds Loom Over Binance

The lawsuit also asserts that investors are not required to demonstrate how the commercials affected their decisions. In addition, organizers and exchanges that facilitate the trading of these assets “would be liable” for any losses suffered by customers. Moreover, the law firm intends to add additional Binance influencers to the lawsuit in subsequent filings. 

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Similar accusations in a prior action against Voyager have already forced Binance and the influencers, including Jimmy Butler of the NBA’s Miami Heat, the National Basketball Association and YouTube stars Graham Stephan and Ben Armstrong (BitBoy Crypto), to make a $1 billion settlement to make up for the damages inflicted to investors.

This news comes just after five days CFTC sued Binance, its Chief Executive Officer (CEO) Changpeng ‘CZ’ Zhao, and another official by the name of Samuel Lim. The main claim in the filed case involves unregistered commodity trading in the United States. 

It is important to take into account that following the CFTC launched a class action lawsuit, trader withdrawals on the Binance platform surged, with customers withdrawing somewhere around $2 billion in the most recent days as pressure rose.

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