French investors sued Binance for over 2.4 million euros in losses

Binance France and its genitor institution Binance Holdings Limited are being sued by 15 investors successful France implicit alleged misleading commercialized practices and fraudulent concealment, according to section media reports. 

In a ailment filed connected Dec. 14, the plaintiffs claimed that Binance violated French laws by advertizing and distributing crypto services earlier receiving registration from the country's authorities. As reported by Cointelegraph, France's fiscal marketplace regulator, the Autorité des marchés financiers, has granted Binance a licence arsenic a integer plus provider successful May 2022. The licence allowed the crypto speech to connection services specified arsenic assets custody and crypto trading.

The ailment reportedly contains screenshots showing Binance's societal media enactment anterior to its license, including a Telegram transmission dubbed "Binance French". The plaintiffs besides assertion to person mislaid implicit 2.4 cardinal euros pursuing the TerraUSD (UST) collapse, portion Binance advertised the token arsenic United States dollar-backed.

Related: France whitethorn oblige crypto platforms to get licenses

In a blog post, Binance France responded to questions astir the case. According to it, the institution did not behaviour immoderate promotional communications successful France during the play successful question, and noted that "Telegram groups are planetary assemblage forums", frankincense allowing users to make and articulation channels voluntarily.

Binance besides addressed questions regarding Terra stablecoin advertisement successful the country. The institution noted that its connection presents staking with Binance arsenic "safe, and not the underlying tokens." The speech besides noted that it ever includes marketplace hazard warnings for crypto products, and has further strengthened its descriptions.

As reported by Cointelegraph, a bid of melodramatic events successful May 2022 resulted successful an unprecedented diminution successful the terms of the LUNA token and its associated stablecoin TerraUSD (UST), which was designed to support algorithmic parity with the United States dollar, but mislaid its peg and plunged to beneath $0.30.