According to the news published by local media, 15 investors in France are reported to be suing Binance France and its parent company Binance Holdings Limited for alleged deceptive business practices and fraudulent concealment.
The applicant argued in a case submitted on December 14 that Binance had broken French law by promoting and providing cryptocurrency services prior to being registered in that nation.
The complaint apparently includes screenshots of Binance’s earlier social media activities, including a Telegram channel titled “Binance French.”
The complainants also said to have lost around 2.4 million euros as a result of the TerraUSD (UST) debacle, while Binance advertising the token as US dollar-backed.
Binance France reacted to inquiries about the case in a blog post. As per the blog post, the business did not conduct any type of marketing activities in France during the relevant period and stated that “Telegram groups are global community forums,” allowing users to build and join channels on their own terms.
Binance also addressed concerns about Terra stablecoin advertising in the country. The company stated that its communication portrays staking with the exchange as “safe, and not the underlying tokens.”
The exchange also stated that it always contains market risk warnings for crypto goods and has reinforced its clarification.
Binance Participates in Chamber of Digital Commerce
Meanwhile, on December 20th, Binance issued a press release announcing the company’s participation in the Chamber of Digital Commerce, a lobbying group for the cryptocurrency industry in the United States.
The collaboration will hasten the development of cryptocurrency transparency laws in the United States.
As reported by TheCoinRise, the dramatic events in May 2022 resulted in an extraordinary drop in the price of the LUNA token and its associated stablecoin TerraUSD (UST), which was supposed to preserve algorithmic parity with the US dollar but lost its peg and fell below $0.30.