Binance is Facing Misleading Terra Investors! Binance, one of the largest crypto exchanges, filed a class action lawsuit on July 11, 2022 in the United States District Court for the Northern District of California.
This is the first lawsuit filed by United States-based Roche Freedom LLP, claiming that Binance misled investors in the Terra network by portraying Terra-based USTs as more stable than they actually are.
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Terra investors were cheated by Binance
Moreover, the lawsuit also claims that Binance.US is not a licensed company and deliberately promotes UST as a security deposit, which is not a lawsuit. However, the company denied the allegations and said that Binance.US complies with all applicable laws. Before Roche Freedom can try its claims against Binance.US in court, the company must convince US District Judge Jacqueline Scott Corley that the case is a matter for the courts rather than a jury trial.
Arbitration is a process where disputes are resolved through the intervention of another party, rather than in court. On January 4, 2023, Roche Freedom filed a brief against Binance’s decision to compel arbitration, which Binance filed in November 2022.
The brief stated that there was no evidence Binance provided that crypto investor Michiel Nuveen, was one of to judge. in that case, found or agreed in the judgment section. In addition, Roche Freedom says that the arbitration process is unfair to users or consumers, because they lead to a complicated process and allow Binance to hold the legal system.
What happens next will depend on what Binance has to say and what the two parties can agree on.
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