Investors sued Binance.US for trading UST and LUNA

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The U.S. District Court for the Northern District of California has filed a class action lawsuit against the U.S. division of the Binance cryptocurrency exchange.

The lawsuit was filed on June 13 by investor Jeffrey Lockhart against BAM Trading Services Inc.(Binance.US) and its CEO, Brian Shroder.The plaintiffs allege that UST and LUNA were listed on the Binance exchange as unregistered securities, so trading in these crypto assets violatesU.S. federal laws.

According to investors who supported the lawsuit,the platform advertised UST as a “secure and fiat-backed” crypto asset. The advertising of the Terra ecosystem by the Binance exchange misled investors, which led to the loss of money as a result of the collapse of the project, the lawsuit states. The plaintiffs are seeking damages from the exchange related to the UST, including payment of trading commissions and interest, as well as legal costs and attorney's fees.

Investors Are Angry That Binanceonce again offered new LUNA tokens for trading when Terra project founder Do Kwon developed a “Terra 2.0 revival plan.” On May 31, the rate of these tokens fell by 67% just a few hours after the start of trading on leading cryptocurrency exchanges.

In early June, Binance CEOChangpeng Zhao assigned the exchange's investigative team to investigate Do Kwon for fraud, insider trading and tax evasion. Meanwhile, an investigation was also carried out into the activities of the exchange itself. As Reuters assured, at least $2.35 billion was laundered through Binance between 2017 and 2021.