Class-Action Lawsuit Filed Against Binance US in Northern California for UST Sales
Disgruntled investors in California have filed a class-action lawsuit against Binance.US for listing TerraUSD and LUNA without disclosing UST as a security.
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While its global counterpart, Binance, faces legal headwinds as the SEC investigates its 2017 initial coin offering, Binance.US, and its CEO Brian Shroder has landed in hot water with American investors, who filed a class-action lawsuit in the Northern District of California.
Plaintiff Jeffrey Lockhart from Utah alleges on behalf of all parties suing Binance.US that the company misinformed investors, telling them that staking UST for substantial returns was safe and that Terra was backed by dollar reserves, in advertisements that were later retracted in an apparent admission of UST’s status as a stablecoin without fiat reserves.
Plaintiffs also allege that the crypto entity did not disclose to the Securities and Exchange Commission that UST was a security, nor did it register with the agency either as a securities exchange or as a broker-dealer.
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