BINANCE

Binance – Faced with a class action lawsuit over the collapse of UST stablecoin

Binance - Faced with a class action lawsuit over the collapse of UST stablecoin

Certainly, the fallout associated with the collapse of the UST stablecoin and the Terra ecosystem has not yet stopped causing a stir. This enters into a devastating domino effect involving many important actors in this stampede. And investors who are determined to find someone besides themselves to explain their risky investments. The reason why the Binance platform has to face a class action lawsuit against it. Because that would promote too much this stablecoin presented as “secure. »

Being a leader definitely does not only have advantages. Just look at how the Binance platform is trying to fight the many attacks against it. On the one hand, regulators are determined to dig wherever penalties can be imposed. And on the other hand, investors carried by the bull market, but (again) fell from a very high level with significant losses at stake. And this simple question: who can be held responsible for this carnage?

Because successful investors are financial geniuses. But those who lose money are the unfortunate victims of influencers and other players in an ecosystem that is fully developed to scam them. Forgetting one of the basic principles of this market: invest only what you can lose. And by not confusing the need to DYOR (do your own research) with a luxury brand. But regardless, Binance is responsible for the losses caused by the collapse of the Terra “Classic” (LUNA, now LUNC) project.

Binance – Facing a Class Action Lawsuit

Indeed, a class action lawsuit has just been filed against the Binance US platform in the United States. This about how the latter presented the UST stablecoin as “secure” and “backed by FIAT currencies. » While the latter did not benefit – obviously – from the necessary and sufficient guarantees to become an investment for the father of the family. But is that really surprising? Anyway, apparently enough yes claim a posteriori that Binance’s claims on this subject are misleading. At the same time, it is somewhat quickly forgotten that the latter also lost more than a billion dollars in this affair…

But the fact is that Binance is a centralized structure (CEX). And the legal requirements it has to meet are not the same as in the case of a decentralized platform (DEX). The reason why it currently has to account for what is presented as an excessive motivation to sell UST stablecoin advantages. First of all, the unsurprising accusation of selling undeclared financial securities. Which should make Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), happy.

Regulation

SEC Chairman Sees Unreported Financial Securities Anywhere and Everywhere…

Hugh B. – August 10, 2021 – 10:12 am

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Because, according to the prosecutor, UST stablecoin would be nothing more than an undeclared financial security (which has yet to be proven). The latter is unauthorized resold by Binance. The platform itself “refused to register with the United States Securities and Exchange Commission as either an exchange or a broker. “And once also accused of “deficiency” in the disclosure of risks associated with UST and LUNA. The desire presented as “intentional and fundamental to Binance’s long-term strategy. » This has yet to be proven. But at least this news certainly shows the return of the bear market haters!

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