Binance slapped with $1bn lawsuit

The exchange and a number of influencers are facing a $1bn lawsuit launched by the same law firm that is also targeting FTX influencers.

Binance and chief executive Changpeng “CZ” Zhao are among those named in a new lawsuit that calls out the company and various influencers, for promoting financial products without a license to do so.

The $1bn class action by the Moscowitz Law Firm and Boies Schiller Flexner was filed late on March 31.

It brings a new legal challenge against the crypto exchange, only four days after it was targeted in a similar lawsuit by the US Commodity Futures Trading Commission (CFTC).

The lawsuit also names famous personalities, including Miami Heat’s Jimmy Butler, the basketball team’s forward.

This new lawsuit is built on the same premise as the CFTC’s legal complaint, arguing that unregistered securities were promoted by the company and its backers in various capacities.

The lawsuit also focuses on Ben Armstrong, a crypto influencer better known by his moniker BitBoy Crypto.

Another targeted personality is Graham Stephan, who is a prominent face on YouTube with more than four million followers.

Moscowitz Law Firm and Boies Schiller Flexner pursued a similar lawsuit in the wake of FTX’s collapse, naming football player Tom Brady and NBA aces Shaquille O’Neal and Steph Curry as some of the people who promoted the exchange to the harm of consumers.

Another party named is Larry David, the comedian from Curb Your Enthusiasm. Both lawsuits allege that consumers have been mislead by the influencers who have used their following to promote a product that they did not fully grasp.

Matt Damon recently spoke about his own Crypto.com advertisement, saying that he had agreed to appear on the ad because Crypto.com pledged to donate to his Water.org charity.

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Written by Alex

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Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.