French investors sued Binance for more than €2.4 million in damages

According to local media reports, 15 investors are suing Binance France and its parent company Binance Holdings Limited in France for alleged deceptive business practices and fraudulent concealment. 

 In a complaint filed on December 14 the plaintiffs alleged that Binance violated French law by promoting and distributing crypto services before obtaining registration from the country's authorities. As reported by Cointelegraph, French financial market regulator Autorité des Marchés granted financiers Binance a digital asset provider license in May 2022. The license allowed the crypto exchange to offer services such as asset custody and crypto trading. 

 The complaint allegedly includes screenshots showing Binance's social media activity prior to obtaining the license, including a Telegram channel called Binance French. The plaintiffs also claim that they lost more than 2.4
 million euros after the collapse of TerraUSD (UST) while Binance was promoting the US dollar-side token. 

 In a blog post, Binance France responded to questions about the incident. He said the company did not engage in promotional communications in France during that period, noting that Telegram groups are global community forums where users can create and voluntarily join channels. 

 Binance also addressed issues related to the promotion of Terra stablecoin in the country. The company stated that in its communication with Binance, the interest is safe, not the underlying tokens. The exchange also announced that it always includes market risk warnings for crypto products and strengthened its descriptions. 

 As reported by Cointelegraph, a series of dramatic events in May 2022 caused an unprecedented drop in the price of the LUNA token and its related stablecoin, TerraUSD (UST). It was designed to maintain algorithmic parity with the US dollar, but lost. and fell below $0.30.


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