The U.S. investor has sued the CEO and Binance U.S. It was alleging that this cryptocurrency exchange has dishonestly advertised Terra USD being the safe asset prior to so-called value collapsed of Stablecoin previous month. On the other hand, the CEO and the exchange both sued by the U.S. investor that has alleges this cryptocurrency exchange and incorrectly marketed Terra USD to be the safe asset infront of so-called collapse of stablecoin in value during previous month.
Basically, these stablecoins are basically the digital tokens that are pegged to value of the traditional assets, like U.S. dollar. As these are popular and also the safe havens during the time of turmoil in the crypto markets. On the other hand, value of Terra USD’s has plunged previous month, thereby breaking the 1:1-dollar peg. It also contributes to the tumble in different crypto assets such as Bitcoin.
False advertisement by Binance!
In such kind of the lawsuit which is against Binance as well as the Brian Shroder, the CEO. Here, Binance has falsely and incorrectly advertise Terra USD being “safe”. It perfectly backed by the fiat currency, when it was the unregistered set of security.
On the other hand, Lockhart says the failure of Binance to register with U.S. government. The limits of securities exchange with disclosure regarding the assets traded on platform thereby harming the investors.
The profits from Binance U.S. from each such trade. Hence, they have a stark incentive for selling the cryptoassets regardless of the compliance with various securities laws. Lockhart mentions in the lawsuit, filed at court of San Francisco federal. Key perspective from Binance U.S.’s is quite less disclosure, it is definitely better.
Such kind of assertions are mainly without merit and mainly will defend this vigorously. This is a spokesperson said in the statement. Thereby adding that exchange will also delist Terra USD, such kind of decision made prior to lawsuit filed.
