Binance Sued for 1,000 Million, Cryptocurrency System Falls?
Last year was fateful for the cryptocurrency industry as mining became unprofitable and most cryptocurrencies saw their value plummet. It was also when we saw a large number of hacks, scams and even bankruptcies of companies in the sector. This year 2023 has not started much better and now, a new lawsuit against Binancethe largest cryptocurrency exchange platform, this time worth 1 billion dollars.
The world of cryptocurrencies has been seen as a relatively “easy and fast” way to get money. This is how many have sold this practice, since those pandemic times where cryptocurrencies like Bitcoin and Ethereum have greatly increased in value. The truth is that today it can also be applied, since we have Bitcoin as a great example. It was speculated that it would fall and that it would reach a minimum and there it is, going from a little more thanand 15,800 euros in January to practically €26,000 now.
Binance sued again for selling unregistered cryptocurrencies
Cryptocurrency mining is virtually gone, but exchanges are not. Cryptocurrency exchanges and trading are still widely used today, although the industry has taken some major hits. Not only the bankruptcy of FTX and other platforms, but Binance, which is considered the most popular, has already suffered a hack where they stole 570 million dollars in 2022. In fact, a few months later, Binance announced that it would temporarily stop trading USDC stablecoin withdrawals.
This current year has not started off on the right foot, as in less than a week it has received two demands. The new lawsuit asks Binance for no less than $1 billion. This came after accusing Binance of trading securities not registered as cryptocurrencieswhat may have affected millions of people for damages. It had been just 5 days since Binance last received a lawsuit for violating cryptocurrency trading rules.
Influencers used to promote the business
Binance is also alleged to have employed various influencers to promote these crypto assets. This is an illegal activity that currently involves 3 influencers, these being the NBA Player Jimmy Butlerthe merchant ben armstrong and the investor Graham Stephan. The lawsuit was filed by three people affected by this case, who lost money due to Binance and influencers. He Employing celebrities to promote and defraud with tokens and cryptocurrencies reminds us of last week’s case.
Focusing on the new process of the cryptocurrency platform Binance, according to the laws of the United States, anyone who buys unregistered securities is entitled to damages and losses. Therefore, they are required to compensate all affected citizens globally. That’s why they estimate there could be millions of people affected worldwide.