Binance, a cryptocurrency exchange, and its CEO CZ have been facing a lot of scrutiny lately. The US Commodity Futures Trading Commission (CFTC) recently filed charges against the company, and a report from the Financial Times alleges that Binance has hidden significant connections to China. Now, Binance, CZ, and three influencers are being sued in a $1 billion lawsuit for promoting unregistered securities.
New Lawsuit Filed Against Binance, CZ, and Influencers
The Moscowitz Law Firm and Boies Schiller Flexner have filed a $1 billion lawsuit in the Southern District of Florida against Binance, CZ, and three influencers. The lawsuit alleges that the exchange was involved in trading unregistered securities and paid influencers to promote them illegally.
Also Read: SEC charges Justin Sun and celebrities for unregistered crypto token sales
The lawsuit claims that Binance is promoting the sale of an unregistered security, and those involved in the promotion of the “unregistered securities” will be liable for consumers’ financial losses. Investors do not have to prove that they were influenced by the ads, and millions of people could receive potential damages.
This new lawsuit adds to the legal troubles Binance is already facing. It remains to be seen how the company and its CEO will respond to these charges, and what the implications could be for the cryptocurrency industry as a whole.
