Binance.US sues for selling LUNA and UST
- June 13, 2022
- 0
On behalf of LUNA and TerraUSD (UST) investors, law firm Roche Freedman LLP has filed a class action lawsuit against the American division of Binance bitcoin exchange and
On behalf of LUNA and TerraUSD (UST) investors, law firm Roche Freedman LLP has filed a class action lawsuit against the American division of Binance bitcoin exchange and CEO Brian Schroeder.
According to the 72-page complaint, Binance.US misled US citizens by offering unregistered securities. Lawyers pointed out that the division is not registered as a broker-dealer in violation of local laws.
According to investors, the exchange branch facilitated the sale of UST and participated in the airdrop of tokens “aimed to increase trading volume.”
In May, Roche Freedman LLP partner Kyle Roche applied to contact the firm for “help” with LUNA and UST investors who have purchased assets on Coinbase, Gemini, and Binance exchanges.
if you bought $LUNA or $UST anyone @coinbase @krakenfx @binance or @Gemini, please contact TerraRecovery@rochefreedman.com. My company is coordinating an effort to help those who lost funds from the recent crash. #terrace and #luna.
— Kyle Roche (@KyleWRoche) May 13, 2022
UST and LUNA prices started falling on May 10. This happened against the background of the exit of assets from the Anchor protocol as the rate of return on deposits dropped to 17.87%. As a result, as early as May 8, the “stablecoin” briefly lost its peg against the dollar.
The decline continued on May 11 and was followed by the LUNA algorithmic stablecoin, which dropped to $0.3.
On May 28, Terraform Labs president Do Kwon announced the launch of the Terra 2.0 mainnet. The listing of the new LUNA tokens was supported by several centralized exchanges, including Binance, Huobi, and Kraken.
Prior to that, Binance CEO Changpeng Zhao announced the company’s losses from investing in Terra. He also stated that the exchange does not make any money in this regard and always prioritizes the protection of users.
Following the collapse of the ecosystem, South Korean financial regulators held an emergency meeting to assess the impact of the event. According to media reports, local authorities began checking Terraform Labs employees as part of the investigation.
In May, LKB & Partners, one of South Korea’s leading law firms, announced plans to sue Kwon.
Recall that in June Bloomberg sources spoke about the investigation initiated by the US Securities and Exchange Commission regarding the IHR.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
