CZ, Binance, influencers face $1B lawsuit for unregistered securities promo
Just five days after Binance and its CEO Changpeng ‘CZ’ Zhao got sued by the United States Commodity Futures Trading Commission (CFTC) for alleged trading violations, a new $1 billion lawsuit was filed against the crypto exchange, CZ, and three crypto influencers for promoting unregistered securities.
On March 31, the Moscowitz Law Firm and Boies Schiller Flexner filed the $1 billion lawsuit in the Southern District of Florida claiming Binance’s involvement in trading unregistered securities and paying influencers for the unlawful promotion of such services, according to Fortune. While explaining the charges, the filing read:
In a previous lawsuit against Voyager, the law firm alleged that influencers promoting “unregistered securities” are liable for customer losses. Based on similar claims, Binance and the influencers — NBA Miami Heat star Jimmy Butler and YouTubers Graham Stephan and Ben Armstrong (BitBoy Crypto) — are challenged with paying $1 billion for the damages caused to investors.
“We’ve been investigating these same unregistered security issues against Binance for over a year,” added the lawsuit. Promoters and the exchanges facilitating trades of such assets “would be liable” for the customer losses. In addition, the suit claims that investors have no obligation to prove they were influenced by the advertisements.
While three American citizens brought in the case, the lawsuit alleges that “millions” of people could be eligible for damages. The law firm also plans to rope more Binance influencers to the suit in future filings.
Related: Binance vs. CFTC: Latest court battle could alter crypto landscape in US
CZ and other top Binance executives have been concealing the crypto exchange’s ties to China, claims
Read more on cointelegraph.com
