A number of pending class action lawsuits have named Binance crypto exchange as one of their defendants. The current lawsuits are targeting some of the largest cryptocurrency companies.
If these class action lawsuits ruled in favor of the investors who joined, the courts could order Binance to pay billions of dollars as a result.
Class action lawsuits seek new members to join
The number of class action lawsuits currently stands at seven (7). However, according to litigation firm, Roche Cyrulnik Freedman, the numbers could grow in the coming months.
Several large firms in the crypto space are listed, including Binance trading platform and founders, Changpeng Zhao and Yi He. Roche Cyrulnik Freedman’s head, Kyle Roche told Cointelegraph:
“Growing enthusiasm for Bitcoin spilled over into the market for initial coin offerings (‘ICOs’), which investors flocked to in the hope of finding the next Bitcoin. The cases allege that exchanges and issuers failed to comply with federal and state securities laws.”
Furthermore, Roche encouraged new members in the cryptocurrency community to come forward and join the class action lawsuits:
“…who purchased any of the tokens or did business on any of the exchanges named as Defendants. We want investors to reach out to us.”
Is Binance’s questionable practices in the pass now hunting them?
The core of the class action lawsuits is focusing on cryptoassets that are pre-mined or minted and ERC20-based tokens. The majority of Binance’s trading pairs; 802 of them, represents that asset class.
Additionally, Binance debuted a IEO launch platform called Launchpad worldwide with Bittorrent Token (BTT) as the first project. BTT raised 7 million dollars.
However, on June 2019, Binance banned United States’ citizens from participating in the exchange platform’s IEOs. But, that does not exclude Binance from liabilities due to the fact that any laws classifying cryptoassets as securities by the U.S Security and Exchange Commission (SEC) will be applied retroactively.
Using Binance.US as evidence
The crypto exchange firm used to operate globally as Binance.com. They have since launched Binance.US, Binace.KR; which target only South Korea residents, and plan to release other country-based version of the platform. The international exchange’s policies are completely different from Binance US.
As a result, plaintiff crypto traders can use that as evidence to prove their cases against the firm. Legally, Binance US is not affiliated with Binance global. Several states have been excluded from trading on Binance.US because the newly minted exchange is not fully compliant with states and federal regulations.
Binance and other named crypto firms responses
Out of the seven crypto firms named on the class action lawsuits, only one (1) responded to Cointelegraph’s inquiries. Some answered with “no comment” or have not responded at all. One of Bibox’s representatives said:
“We are running the exchange [that] provides crypto trading service and cryptocurrencies are not securities”.
How to participate in the cryptocurrency class action lawsuits
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.