- A lawsuit for violation of French law hits Binance France and Binance Holdings Ltd.
- The lawsuit alleges that the exchange platform violated the law by advertising and distributing crypto services before receiving registration.
- French investors allege that Binance France engaged in misleading commercial practices and fraudulent concealment.
Binance France and its parent company are being slammed with a lawsuit by 15 French investors who allege the exchange of misleading commercial practices. The French local media reported the complaint that was filed on December 14. Binance started advertising its crypto services before receiving its registration from France’s financial regulator.
Also read: Binance auditor Mazars suspends proof-of-reserves services for all crypto exchanges, here’s what this means
Binance France allegedly violated French law, advertised crypto services before obtaining license
Binance France and its parent company Binance Holdings Limited are being sued by 15 investors in France, according to local media reports. In a complaint filed on December 14, plaintiffs claim that Binance violated French laws by advertising and distributing crypto services before receiving registration from the country's authorities.
France's financial market regulator, the Autorité des marchés financiers, has granted Binance a license as a digital asset provider in May 2022. The license allowed Binance to offer crypto trading and custody services. The complaint details that the cryptocurrency exchange platform started advertising on social media before receiving the license. A Telegram channel dubbed Binance French shared details of services provided by the firm.
The investors claim that they lost €2.4 million to the collapse of algorithmic stablecoin USDT since the trading firm advertised it as a USD-backed token.
Binance France responds to €2.4 million lawsuit
The world’s largest exchange by trade volume is known for its transparency. The company responded to questions on the case and argued that no promotional content was shared in France prior to receiving the license. The exchange noted that it included market risk warnings for all its crypto products and addressed Terra’s stablecoin advertisement concerns.
The France-based platform argues that Telegram groups are community forums and can be created by users voluntarily. Therefore the exchange did not engage in promotional activities ahead of the scheduled time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
China coin narrative in play as Coinbase CEO warns of restrictive US crypto policies
Brian Armstrong, CEO and co-founder of cryptocurrency platform Coinbase, shared his thoughts on restrictive US crypto policies in an opinion editorial published by Market Watch on Tuesday.
Ethereum holders pull $1 billion in ETH off exchanges hinting retail-led rally
Ethereum holdings in exchange wallets declined by $1.04 billion between May 8 and May 31. Interestingly, while large wallet investors have shed their Ether holdings, the altcoin got redistributed to addresses with less than 1 ETH.
Dogecoin price action hints DOGE can reverse its bearish trend
Dogecoin (DOGE) price presents a potential for trend reversal provided a certain set of conditions are met. These conditions involve overcoming key hurdles for DOGE bulls and seeing momentum indicators flip bullish on lower time frames.
PEPE price to drop another 15% as altcoin winter is only halfway finished
PEPE price is feeling the frost and cold of the altcoin winter that continues with some notable slides in price valuation in the altcoin space. After price action dropped below $0.0014700, traders must have understood that a turnaround would only occur at a high supportive level.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.