Binance.US Hit With Class-Action Lawsuit Accused of Misleading Investors Over Terra Incident

Jun 13,2022
KingData News: Binance.US has been hit with a class-action lawsuit accused of misleading investors over the Terra incident, according to public lawsuit filings. The lawsuit, filed by U.S. law firm Roche Freedman LLP, accuses Binance.US of over-promoting Terra Eco Stablecoin UST, causing huge losses for investors. The lawsuit also alleges that Binance.US did not register as a broker-dealing platform because Binance.US listed USTs that could be identified as unregistered securities, a move that allegedly violated securities laws.
This indicator provides follow-up on the depg of Terra's stablecoin UST on May 8th. Terra's stablecoin UST briefly lost its peg to the U.S. dollar on May 8th, dipping as low as $0.985. The depeg event came after a series of multi-million dollar UST selloffs as one account traded about $85 million worth of UST for USDC on Curve Finance, while another user reportedly sold $108 million worth on Binance. UST posted a slight recovery shortly after Terraform Labs CEO Do Kwon posted a tweet calling out the stablecoin's critics.