As a result of the failure of rival cryptocurrency exchange FTX, Binance, which is the biggest cryptocurrency business in the world, has had a difficult few weeks. In addition, its token, BNB, has been trading consistently in the red.
After a series of crypto exchange collapses this year, crypto investors have grown cynical about statements made by senior executives regarding the financial health of their companies.
Recent developments at Binance include a lawsuit filed against the exchange and its French subsidiary.
Fifteen investors filed a lawsuit against Binance on December 14 alleging that the exchange had broken French law by promoting and selling cryptocurrency services before obtaining proper authorization from French authorities.
The lawsuit includes images that illustrate Binance’s activity on social media prior to the issuance of its license. These activities include the creation of a Telegram channel under the name Binance French.
The plaintiffs additionally allege that they have suffered a loss of over 2.4 million euros as a result of the collapse of TerraUSD (UST), despite the fact that Binance promoted the token as being backed by the United States dollar, and they want their money back.
Binance France provided their responses to inquiries about the issue in a blog post. It states that the firm did not engage in any promotional activities in France during the time period in question. Additionally, it was mentioned that Telegram groups are worldwide community forums, which enable users to freely establish and join channels.
They said:
“Binance did not promote in France before being allowed to do so. Telegram groups are global community forums, which any Telegram user can create or join voluntarily.”
Without a question, the demise of FTX has caused Binance a great deal of trouble. Despite the fact that the platform has displayed time and time again that it is reliable and safe, a significant number of investors now avoid using it.
As a matter of fact, some have even predicted that Binance may go down soon.
If Binance falls, hardly anyone will be able to salvage it. Meanwhile, others display unrelenting faith in the exchange and it’s CEO “CZ”.
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