Crypto exchange Binance. US is sued over the collapse of the UST cryptocurrency

Investors who have invested in the Terra ecosystem have filed a class action Binance-us-luna-class-action-pdf">lawsuit against Binance. US, a subsidiary of the global cryptocurrency exchange Binance, and its CEO Brian Schroder for false marketing. According to 2,000 investors, it was the PR company Binance. US that caused them to lose their savings.

According to the CoinTelegraph, the lawsuit was filed by law firms Roche Freedman and Dontzin Nagy & Fleissig on behalf of investors who lost their money during the recent collapse of LUNA and UST.

Roche Freedman LLP’s lawsuit alleges that Binance. US advertised UST Terra as a more stable cryptocurrency than it actually was. «When UST and its subsidiary token LUNA crashed, thousands of investors lost all their money. And it was the deceptive advertising that was responsible for these losses,» the lawsuit said.

Investors also claimed that Binance. US is not registered as a brokerage firm or exchange, which violates securities laws, to which Binance. US is then prohibited from having access. The plaintiffs accused the crypto exchange of deliberately promoting an inferior project in which its parent company had previously invested.

Recently, Roche Freedman founder Kyle Roche called on Twitter for investors to contact him if they bought LUNA on any of the leading crypto exchanges in the United States.

If you purchased $LUNA or $UST on either @coinbase @krakenfx @binance or @Gemini, please reach out to [email protected]. My firm is coordinating an effort to help those who lost funds from the recent collapse of #terra and #luna.

— Kyle Roche (@KyleWRoche) May 13, 2022

The lawsuit against Binance. US was the first in America and, apparently, according to Roche’s tweet, not the last for other cryptocurrency exchanges that may face similar lawsuits in the near future.