Investor claims $ 140 million compensation from Binance for automatic liquidation of positions

A large European investor initiated an arbitration process against the Binance exchange for the automatic sale of promising digital assets by the platform, which it wanted to keep.

According to The Block, the plaintiff seeks compensation inin the amount of more than $ 140 million for unfair liquidation of positions by the trading platform system. According to the investor, in November 2020, the exchange actually forced him to sell a large volume of competitive cryptocurrency to the detriment of his interests. He also claims that Binance itself had a conflict of interest during the liquidation.

Insofar as the company does not yet recognize any of itshead offices, the claim was addressed to 45 divisions around the world. After several months of negotiations in Switzerland, arbitration proceedings were initiated.

According to the norms of international law, such casesare examined by three arbitrators (one from the plaintiff and the defendant, and another independent third-party representative), who, instead of the judge and the jury, issue a verdict.

In addition, Binance is also facing a class action lawsuit for $ 5 million, which is demanded by platform users as compensation for damage from the crash on May 19, due to which the bitcoin rate fell sharply.

Last year, Binance was also sued for helping to launder $ 9.4 million.

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