Largest cryptocurrency exchange Binance and its CEO Changpeng Zhao and three other influencers are facing a $1 billion lawsuit for allegedly promoting unregistered securities that harmed investors.
According to Fortune on March 31, New York City-based Boies Schiller Flexner and US based Moscowitz Law Firm have filed a $1 billion lawsuit in the Southern District of Florida. The lawsuit states that crypto exchange Binance engaged in unregistered securities trading and paid influencers to falsely advertise those services.
The law firms sued Binance and three crypto influencers, NBA Miami Heat star Jimmy Butler, and YouTubers Graham Stephan and Ben Armstrong (BitBoy Crypto) to pay $1 billion for massive losses to investors amid the unregistered securities promotion.
It is yet another blow to Changpeng Zhao (CZ) as a few days ago, the United States Commodity and Exchange Commission (CFTC) also sued Binance and its CEO CZ for violating derivatives trading regulations.
As per Lawsuit, “This is a classic example of centralized exchange, which is promoting the sale of unregistered securities.” The lawsuit added that “We’ve been investigating these same unregistered security issues against Binance for over a year.”
The lawsuit reveals that millions of retail investors have lost money in the crypto industry crisis and millions more may be eligible for damages.
