Binance US, Binance’s US-based subsidiary, has been charged with a class-action complaint for allegedly listing and illegally selling UST and LUNA tokens as unregistered securities.
Binance US, according to the class-action lawsuit, has violated federal and state securities laws in the United States. Furthermore, the crypto exchange misrepresented UST as “safe” and “fiat-backed” to sell UST and LUNA coins.
The plaintiff demands damages, the amount paid for the UST, trading fees, plus interest, as well as attorneys’ fees and costs.
On June 13, plaintiff Jeffrey Lockhart and others filed a class-action complaint against BAM Trading Services Inc. (Binance US) and its CEO Brian Shroder in the United States District Court for the Northern District of California.
TerraUSD (UST) investors have filed ten separate lawsuits against Binance.US and its CEO Brian Shroder. These include the unregistered offering and sale of UST and LUNA, obligations to pay transaction fees to an unregistered crypto exchange, and an arbitration mechanism meant to deter regular investors from submitting claims.
Indeed, the complaint was the first LUNA and UST-related court case launched in the United States after investors worldwide lost roughly $40 billion in the Terra crash. Binance’s deceptive advertisement. The United States misled investors about the Terra blockchain ecosystem, causing them to lose money.
According to the lawsuit, Terra’s founder Do Kwon devised the Terra 2.0 Revival Plan to establish a new Terra blockchain and its LUNA 2.0 token without the need for the UST stablecoin. Despite the benefit to its investors, Binance has once again endorsed the LUNA 2.0 listing.
Binance US and its CEO Brian Shroder are held accountable for investor losses, and a jury should be formed to recover investor monies.
Terra 2.0 (LUNA) Price Continues To Fall
The LUNA pricing has failed to gather traction and has fallen to an all-time low. The price of LUNA is currently $2.47, down approximately 6% in the previous 24 hours. Since its initial public offering on May 28, 2022, the new coin has fallen by 87 percent. Terra Classic (LUNC) has dropped 10%, with the price currently trading at $0.00006033.
