The investors in the class-action suit against Binance allege they lost “tens of millions” of dollars due to not being able to manage their positions and view their balances during peak trading hours.
It is alleged that Binance breached its own regulations on futures trading, according to a class-action lawsuit brought by a group of Italian and foreign investors against the largest cryptocurrency exchange.
On Tuesday, the Italian legal and consulting business Lexia Avvocati said that it will file a lawsuit against the cryptocurrency exchange Binance to collect losses from trading on the exchange’s futures platform, which was defunct at the time.
Binance is being sued by a group of investors, according to the business and the Swiss Blockchain Consortium, who claim the exchange violated its regulations on crypto derivatives trading and failed to perform effectively during peak trading hours.
It was on Feb. 8, when Elon Musk revealed that Tesla had acquired $1.5 billion worth of Bitcoin, that the crypto exchange went offline for many hours, according to local news site Milano Finanza. The case is based on the crypto exchange going offline for several hours on separate days (BTC).
The investors who filed the class-action lawsuit claim they have lost “tens of millions” of dollars as a result of their inability to manage their trading positions and check their account balances.
The company also asserts that disruptions of a comparable nature that happened on April 18, May 5, May 19, May 28 and June 4 were also grounds for reimbursement.
Lexia said that, despite the fact that Binance allegedly allowed customers who were harmed by the outages to request compensation, the exchange was only giving a “pitiful amount” for its clients, who rejected the “laughable” offer.
The legal firm stated that if Binance were to adequately pay the investors by July 12, the case would be dismissed. The firm also stated that it would pursue regulatory limitations for the exchange in the European Union and Switzerland.
The legal action comes as a result of recent announcements by Thailand’s Securities and Exchange Commission and the Cayman Islands Monetary Authority that they will crack down on Binance for operating in their respective jurisdictions without a valid licence or authorization.
Reports in March that the exchange may also be the subject of an investigation by the United States Commodity Futures Trading Commission, which was looking into possible trades made by clients residing in the United States.