July 22, 2024

French investors sued Binance crypto exchange

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1 min.

French investors sue crypto exchange Binance

15 investors from France have sued the local unit of the world's largest cryptocurrency exchange and its parent company Binance Holdings, accusing them of "deception and fraud."

The plaintiffs said Binance violated lawsFrance on advertising - according to the authors of the statement, the largest exchange began advertising its services before receiving a license from local regulators. Binance France received a license to operate in May 2022.

The plaintiffs provided screenshots of the advertisements,hosted by Binance before obtaining a license. They also provided screenshots from the Binance French telegram channel, where posts appeared calling for investing 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 exchange positions itself as a safe platform for investment, but this does not mean that the trading platform ensures the safety of any token. As for the telegram channels, according to Binance representatives, these are “global forums for the community” 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.