The French branch of Binance, the largest crypto exchange in the world, is in trouble. The company is being sued by 15 investors from France for misleading and fraudulent practices, according to the reports from a local news medium. In the December 14 lawsuit, the investors claim that Binance flouted French law.
Binance has been active before it was licensed
According to the investors, Binance France would have become active in France before it was licensed to actually operate. To top it all off, the platform also advertised itself, without being officially allowed to keep a trading platform running on the French market at all.
Ultimately, Binance France was not licensed by the French financial regulator until May 2022. This license allows it to offer its services as a custodian and trading platform in France.
The indictment contains some images showing that Binance France had been active in the country for a long period of time. Including with a Telegram channel called “Binance French.” The plaintiffs claim they lost a total of $2.4 million as a result of the collapse of Terra (LUNA) and TerraUSD (UST) in May this year.
Ads of crypto exchange
Binance France allegedly advertised UST as a currency backed by US dollars, according to prosecutors. In a blog post Binance France responds to the case. According to the company, it has certainly not made any misleading communications.
“Telegram groups are global forums that users can create and enter themselves,” says Binane France. Finally, Terra’s TerraUSD token crashed in May 2022. Exactly at the same time, Binance France received its license in France to legally operate an exchange platform. The ‘investors’ in question now hope to receive compensation from the platform through a lawsuit. However, the chances of them getting it seem small.
