$1 billion lawsuit filed against Binance and Changpeng Zhao for advertising unregistered securities

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Last week the Commission onUS Commodity Futures Trading (CFTC) filed a lawsuit against the Binance exchange and its founder Changpeng Zhao. Today it became known about another lawsuit in the amount of $1 billion.

The Southern District Court of Florida filed a lawsuit againstby the law firms Moscowitz and Boies Schiller Flexner. The plaintiffs accuse Changpeng Zhao, his company Binance and three “cryptocurrency bloggers” of unregistered trading of securities in the form of cryptocurrencies, as well as promoting such services.

“This is a classic example of a centralizedan exchange that promotes the sale of unregistered securities. We have been investigating cases of securities sales on the Binance exchange for more than a year,” write the authors of the document.

The lawsuit names Zhao and his “accomplices”“possible reasons” for financial losses of Binance clients. At the same time, lawyers argue that investors “do not need to prove that they were influenced by advertising.” And although the original plaintiffs are three law firm clients, “Binance’s actions could have affected millions of people.” Lawyers also state the possibility of bringing other “crypto-influencers” to justice.

Zhao previously denied the CFTC's allegations of violationAmerican laws and emphasized that Binance has one of the largest departments for working with regulators and all accusations of “lack of compliance with regulatory requirements” are groundless.