BINANCE.FI
id: 656
Binance Case on Sale Unregistered Tokens
The settlement terms have been submitted to the court for approval.
S.D. Florida
Court1:23-cv-21261
Case numberANY INVESTOR/USER who suffered losses from buying ANY TOKEN (unregistered securities) on BINANCE can JOIN CASE!
On March 27, 2023, Binance and its CEO Changpeng Zhao faced a lawsuit from the CTFC for allegedly breaking trading and derivatives rules.
The agency said Binance and CZ wilfully ignored registration and compliance requirements under U.S. federal law, despite exploiting key U.S. commercial relationships to earn significant revenue.
- According to other reports, Binance listed unregistered securities as cryptocurrencies and paid social media influencers to promote these assets.
- One of the cryptocurrencies considered unregistered security in the case is the Binance token BNB. The BNB burn program makes the asset an unregistered security because it reduces the coin’s supply to boost its value.
The fact of regulators' investigations makes Investors and Clients of the crypto exchanges suspect that their rights could be violated, which could lead to losses for them.
Case Status
Stipulative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Fraud,
Failure to Disclose,
Price manipulation,
Malpractice,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Shareholder,
Influencer,
Service Provider
Security Type
Crypto Asset
Trade Direction
Long
Filing date
03/31/2023
Lead Plaintiff Deadline
06/01/2023
Plaintiffs
Michael Sizemore; Mikey Vongdara; Gordon Lewis
Attorneys
Moscowitz Law Firm, Boies Schiller Flexner
Defendants
Changpeng ‘CZ’ Zhao, Jimmy Butler, Graham Stephan, Ben Armstrong’ Bitboy’
Judge
Roy K. Altman
Administrator
JND Legal Administration
Settlement agreement date
2024-08-19
Trades matching type
FIFO
+$340,000
Cash Settlement Amount