Alleged that it was promoting unregistered securities
US law firms Moskowitz Law Firm and Bois Schiller Flexner filed a class action lawsuit against the largest cryptocurrency exchange Binance and related influencers on the 31st.
Binance allegedly traded unregistered securities and paid influencers to illegally promote its tokens on social media.
The complaint names Binance CEO Changpong Zhao (CZ) as the defendant, and influencers NBA player Jimmy Butler, investment-related content creators Ben Armstrong, and Graham Stephens as influencers. 4 people were named.
Moskowitz Law Firm said it plans to add other influencers to the class action lawsuit in the future.
He also said that Binance signed “brand ambassador” contracts with celebrities such as Butler to help promote Binance and attract new customers. An influencer argued that Binance would not have been able to grow as it does without promoting its unregistered securities.
According to the complaint, the lawsuit was filed by three plaintiffs who allege they lost money due to cryptocurrencies promoted by Binance. It also noted that the number of people affected by Binance’s actions could be “millions.”
This is how dumb Adam Moskowitz is:
He’s suing me for promoting unregistered securities through affiliate program at Binance
What evidence does he use?
— Ben Armstrong (@Bitboy_Crypto) April 3, 2023
Commenting on the lawsuit, one of the defendants, Ben Armstrong, said:
The Moskowitz Law Firm is suing me for promoting unregistered securities in the Binance affiliate program.
As evidence, Moskowitz cites a complaint against Binance by the US Commodity Futures Trading Commission (CFTC). Among them, the CFTC is referring to Bitcoin, Ethereum, Litecoin, etc. as “commodities”.
The CFTC considers some of the cryptocurrencies to be commodities, but in this lawsuit it is considered to be securities, pointing out a difference of opinion.
Lawsuits by the CFTC
In the United States, the US Commodity Futures Trading Commission (CFTC) is suing Global Binance and its CEO Changpong Zhao (CZ). It alleges that Binance did not comply with U.S. law and provided unregistered derivatives trading services to U.S. investors.
In addition, it is concerned that basic procedures for combating terrorist financing and anti-money laundering have not been implemented.
connectionUS CFTC sues Binance and CZ for violating US law
CFTC (Commodity Futures Trading Commission)
An organization that supervises the futures trading market in the United States, including commodities listed on commodity exchanges, interest rates, and derivatives in general. A government agency established in 1974. To protect market participants and ensure the soundness of the market, we will prevent and detect fraud. “CFTC” stands for “Commodity Futures Trading Commission”.
Binance has just denied online rumors that Interpol is planning to arrest CZ. The rumor was spread by an account called “Cobie” on Twitter, and bitcoin and BNB dropped in response.
connection: Rumors of ‘international wanted’ for Binance’s CZ, denial that the person in charge is not true