Affected after the collapse of Terra contemplate suing Binance.US for deceptive campaigns – DiarioBitcoin

US authorities capture nuclear engineer after receiving cryptocurrencies for the sale of secret plans - DiarioBitcoin

Affected after the collapse of Terra contemplate suing Binance.US for deceptive campaigns - DiarioBitcoin By Angel Di Matteo @shadowargel

Those affected contemplate filing a class action lawsuit in the US against Binance.US, claiming that the exchange gave inaccurate information to promote the purchase of UST Y MOON before the collapse. They also denounce that the platform failed to comply with the provisions of the securities laws.

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  • Those affected in the US will collectively sue Binance.US.
  • They allege misleading advertising to promote UST Y MOON before the collapse.
  • accuse Binance.US of violating US securities law.
  • Despite launching Terra 2.0, the project has failed to stay afloat.

Recently published reports reveal that a group of investors affected after the fall of land and its tokens plan to file a class action lawsuit against Binance.US, the address of the exchange especially aimed at clients residing in the US.

Users contemplate suing Binance.US after what happened with land

According to a legal document released by various media, the affected users allege that Binance.US made use of misleading marketing proposals, as it would have offered inaccurate information about the stability of ust, the stablecoin launched by the team of Earth, which they allegedly referred to as a “safe” investment and using other qualifiers to make it more attractive.

Among other details present in the lawsuit, those affected also accuse that Binance.US benefited from what happened, because he put up for sale the new MOON of land 2.0 after the collapse of the previous version, thereby creating a new mechanism for profit.

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Another additional aspect indicates that Binance.US would not have complied with the rulings established in the securities law, alleging that the entity is not registered as a stock exchange before the country’s regulators. However, the staff of Binance discredited this by arguing that it was duly registered with the FinCEN, therefore, it operates in accordance with the corresponding regulations.

The document associated with the lawsuit indicates that this complaint would be supported by thousands of affected investors, and would be asking the exchange for compensation that exceeds USD $5 million.

The fall of land (Review)

Let us bear in mind that the fall of land and its flagship coins was one of the events that strongly felt its weight on the digital currency market, since it showed that if conditions are not favorable, a stablecoin that operates under an algorithmic model could see its capacity compromised. to maintain parity with the associated fiat currency.

In the case of ust, the cryptocurrency lost parity with the US dollar and derived significant losses for all those who used it for various purposes, especially for those who operated in the sector DeFi and whose funds remained blocked during the crash.

In an attempt to try to recover the value of ust, the Terra team proceeded to liquidate a good part of the reserves Bitcoin that had been accumulating to support the stablecoin. This also led to a sharp drop in the token MOON (LUNC), which lost more than 99% of its value amid the tensions and fears of investors.

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Since what happened no longer had a viable solution, the Terra team headed by Do Kwon proposed launching a 2.0 version for the network, with which they would compensate those affected with a new token. MOON. However, despite its launch, the new cryptocurrency was unable to maintain its starting value and is currently trading at around USD $2.46 per unit, a figure far from the USD $17.8 with which it originally opened commercial operations.


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Font: cryptobriefing, Demand document

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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