$1B lawsuit against Binance CEO & three other people
Binance co-founder Changpeng Zhao (CZ) faced another lawsuit within a week over promoting the sale of an unregistered security.
Binance is a famous crypto company in the crypto sector, which provides secured crypto trading in several countries. In the US, this crypto company provides services via an independent subsidiary BinanceUS. Changpeng Zhao (CZ) is the CEO & co-founder of Binance exchange.
On 1 April 2023, Fortune reported that the Moscowitz Law Firm and Boies Schiller Flexner filed a lawsuit against Binance CEO Zhao and four other Influencers— NBA Miami Heat star Jimmy Butler, and YouTubers Graham Stephan and Ben Armstrong (BitBoy Crypto).
The lawsuit alleged that Binance CEO paid money to these influencers to promote unregistered securities offerings and claimed that millions of people are eligible for the damages. Through this legal step, the law firm challenged paying $1 billion.
filing read:
“This is a classic example of a centralized exchange, which is promoting the sale of an unregistered security.”
The lawsuit stated that the law firm investigated Binance over the past few years and found that the exchange provided trading for those crypto assets which would be liable for the customer losses and also claimed that such unethical advertisements were not noticed by the majority of its customers & also these customers don’t have any proof against Binance.
This law firm also aimed to bring many other Binance Influencers under its suit in the future.
Earlier this 6 days ago, the United States CFTC agency sued this exchange over unregistered derivatives trading services in the US and non-cooperation with the investigation agencies over Binance services.
Such back-to-back Lawsuits against Binance & its CEO is a hint that Binance company will face huge legal hurdles in near future.
Read also: March 2023 was worst month for Bitcoin ATMs
