A group of traders from France, USA, Australia and Ukraine are filing a lawsuit against the Binance platform for failing provide trading functionality during a high load on the exchange.
The case filed with the International Commercial Arbitration Court represents the largest investor lawsuit ever brought against a cryptocurrency platform in the digital currency markets.
The charge is related to the shutdown of the exchange on May 19,which coincided with a sharp drop in the price of bitcoin. Futures traders were particularly affected. During high market volatility, they could not close their positions. By the time the service was restored, many of them had already been eliminated. Traders are confident that if Binance worked well, they would have time to close their positions before liquidation.
More than 700 people were affected by the disruption, and lost about $ 20 million. If their claims are proven in court, Binance will have to compensate for these losses out of their own pocket.
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