Updated on July 10, 2023 03:56 PM
A class-action lawsuit was brought by investors against Binance, a significant cryptocurrency exchange. They are suing for compensation for losses sustained as a result of platform malfunctions during key trading periods.
A group of investors filed a class-action complaint against Binance, a major cryptocurrency exchange, seeking damages for losses incurred amid platform failures at crucial trading moments last year. Binance is scheduled to appear in court on Thursday in Italy.
In November 2021, a number of Italian and foreign Binance users filed a lawsuit against the business and CEO Changpeng Zhao, citing numerous instances in which the site went down and shut users out of the exchange. The investors claim that the interruptions prevented them from changing their trading positions and resulted in "tens of millions" of dollars in losses.
Furthermore, numerous other cryptocurrency trading sites also went through a similar problem in February 2021. For instance, Gemini and Kraken encountered technical issues as a result of increased trading pressure brought on by the news that Elon Musk had invested US$1.5 billion in Bitcoin ( BTC).
In the class action case, Binance is charged with breaking the law by allowing customers in Italy to use the platform's leveraged futures trading services.
Binance was cautioned by Italy's financial watchdog in July 2021. The company is not permitted to offer investing services in Italy, they warn. However, Binance decided to register its services with linked parties as a supplier of cryptocurrency trading services under the control of Italian regulators in early 2022 in order to comply with anti-money laundering laws.
Binance founder Changpeng Zhao said that the significant EU Crypto Asset Market (MiCA) regulations are "a tad stiff" on stablecoins during the Binance Blockchain Week event hosted in Paris. due to the stablecoin's value being correlated to other assets like fiat and gold.
However, the group of persons who filed the case does not appear to have been very interested in Binance's offer to step in and compensate those who made claims among those who filed the complaint.
When asked about the situation, Dagnino mentioned Binance's offer of compensation to purported users injured by the 2021 operational blocks.
The truth is emerging: Lexia Avvocati and the firm defending Binance have clashed in what seems to be one of those legal battles that will go to court for a number of reasons.
One of the primary causes appears to be that because the crypto industry is still in its infancy, there isn't much precedent for these lawsuits to draw from to generate ideas, which would be useful for future instances of a like nature.
An Italian crypto trader filed the lawsuit against Binance in court.
The lawsuit was filed due to a transaction issue experienced by the Italian crypto trader on the Binance platform.
The details of the transaction issue are not specified in the given information. Further information may be available through official court records or statements related to the case.
The lawsuit aims to address and resolve the transaction issue through legal means, seeking appropriate remedies or compensation.
The response of Binance to the lawsuit is not mentioned in the provided information. It is advisable to refer to official statements or sources related to Binance for updates on their stance and response.
The impact of this specific lawsuit on Binance or the crypto trading industry as a whole is not outlined in the given information. For a comprehensive understanding of potential implications, it is recommended to follow news sources or legal developments related to the case.