CZ, Binance, influencers face $1B lawsuit for unregistered securities promo

Just five days after Binance and its CEO Changpeng ‘CZ’ Zhao were sued by the U.S. Commodity Futures Trading Commission (CFTC) for alleged trading violations, a new $1 billion lawsuit has been filed against crypto exchanges CZ and 3 filed against two cryptocurrency influencers. Advertising unregistered securities.

On March 31, Moscow Law Firm and Boies Schiller Flexner filed a $1 billion lawsuit in the Southern District of Florida, accusing Binance of being involved in trading unregistered securities and accusing influencers of illegally promoting such services. claimed to be making payments to according to to Fortune. While explaining the accusations, the filing read:

“This is a classic example of a centralized exchange facilitating the sale of unregistered securities.”

In a previous lawsuit against Voyager, the law firm argued that influencers promoting “unregistered securities” were liable for the loss of customers. Miami Heat star Jimmy Butler, YouTubers Graham Stefan and Ben Armstrong (BitBoy Crypto) are being sued for $1 billion in damages caused to investors.

“We have been investigating similar unregistered security issues against Binance for over a year,” the lawsuit added. Promoters and exchanges facilitating the trading of such assets are “responsible” for the losses of their customers. Further, the lawsuit argues that investors are under no obligation to prove that they were influenced by advertising.

While three American citizens have filed lawsuits, the lawsuit claims that “millions” of people could be subject to damages. , plans to bring more Binance influencers into litigation.

Related: Binance vs. CFTC: Latest Legal Fight Could Change U.S. Crypto Landscape

CZ and other Binance executives have hidden the exchange’s ties to China, the Financial Times reports.

In November 2017, Zhao said in the company’s message group, “We no longer publish our office address. People in China can directly tell us that our office is not in China.

However, Binance confirmed to Cointelegraph that it “does not operate in China and does not have technology, including servers or data, based in China,” adding:

“While we used our China-based customer service call center to serve Mandarin speakers around the world, relocation assistance will be available from 2021 for employees who wish to remain with the company. it was done.”

According to Binance, the company’s 8,000 full-time employees live in Europe, the Americas, the Middle East, Africa and Asia Pacific.

Magazine: US enforcement agencies heat up on crypto-related crime