June 7, 2023

French investors sued Binance crypto exchange

Article reading time:
1 min.

French investors sued Binance crypto exchange

15 investors from France have filed a lawsuit against the local division of the world's largest cryptocurrency exchange and its parent company Binance Holdings, accusing them of "fraud and fraud."

Plaintiffs Claim Binance Violating French Lawsabout advertising, according to the authors of the statement, the largest exchange began to advertise its services before obtaining a license from local regulators. Binance France received a license to operate in May 2022.

The plaintiffs provided screenshots of an advertisement posted byBinance before obtaining a license. They also provided screenshots from the Binance French telegram channel, where posts appeared with a call to invest in cryptocurrencies through the Binance platform. According to the plaintiffs, they lost about 2.4 million euros during the collapse of the Terra ecosystem, while the Binance exchange channel called for investments in the TerraUSD stablecoin.

Binance representatives responded by saying that the exchangepositions itself as a safe investment platform, but this does not mean that the marketplace ensures the safety of any token. As for the telegram channels, according to Binance representatives, these are “global community forums” and are not official channels of the exchange.

Previously, Binance CEO Changpen Zhao called
France is the most important country for site development in Europe.