Binance Sued for Alleged Securities Violations and Crypto Market Supremacy
In Brief
Binance is embroiled in a lawsuit accusing it of breaching securities laws and engaging in anti-competitive practices in an attempt to dominate the cryptocurrency platform market.
Investor Nir Lahav filed the lawsuit, alleging that Binance disrupted rival trading platforms associated with FTX entities, resulting in violations of the Securities Exchange Act and California’s Unfair Competition Law.
Cryptocurrency giant Binance is in a legal battle over allegations of breaching securities laws and anti-competitive behavior to assert dominance in the crypto platform market. Investor Nir Lahav has filed a lawsuit claiming that Binance’s actions disrupted rival trading platforms linked to FTX entities, violating the Securities Exchange Act and California’s Unfair Competition Law.
The violations include breaches of the Securities Exchange Act and California’s Unfair Competition Law. The proposed class action seeks to include those who invested with FTX between November 6, 2022 and November 8, 2022, during a period of notable market volatility.
The complaint further asserts that Binance and its CEO, Changpeng Zhao (CZ), openly acknowledged their rivalry and animosity towards FTX entities and its founders due to their regulatory efforts.
“When an opportunity to hurt FTX Entities arose, Zhao did not hesitate to trigger the collapse of FTX Entities stock in the market. Zhao’s vendetta has hurt Plaintiff and the Class,” the lawsuit read.
CZ’s actions, including questioning FTX-issued cryptocurrency token FTT and announcing the sale of Binance’s FTT holdings on November 6, 2022, allegedly contributed to a customer run on FTX. This resulted in significant market disruptions and damage to FTX entities.
Binance was originally founded in China but is currently based in the Cayman Islands. The complaint also alleges its continued operations in China. This legal challenge adds to Binance’s growing legal troubles, as the Securities and Exchange Commission (SEC) also recently filed a lawsuit against the company and CZ, citing mishandling of customer funds and violations of securities rules. The exchange’s legal battles underscore the increasing regulatory scrutiny faced by the cryptocurrency industry globally.
Read more:
- Circle Steps Into Binance’s SEC Case Arguing in Favor of Stablecoins
- Binance Aims for Legal Victory Following Ripple’s Triumph in SEC Battle
- Binance.US Under Regulatory Spotlight as SEC Flags Compliance and Custody Concerns
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
