{"id":48996,"date":"2022-06-13T17:53:24","date_gmt":"2022-06-13T17:53:24","guid":{"rendered":"https:\/\/harchi90.com\/investors-are-suing-binance-over-unstable-stablecoin\/"},"modified":"2022-06-13T17:53:24","modified_gmt":"2022-06-13T17:53:24","slug":"investors-are-suing-binance-over-unstable-stablecoin","status":"publish","type":"post","link":"https:\/\/harchi90.com\/investors-are-suing-binance-over-unstable-stablecoin\/","title":{"rendered":"Investors are Suing Binance Over Unstable ‘Stablecoin’"},"content":{"rendered":"
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More than 2,000 people who invested money in the the so-called \u201calgorithmic stablecoin\u201d TerraUSD (UST) have come together in a class-action lawsuit against the crypto-trading platform Binance, according to to report<\/span> from CoinDesk.<\/p>\n

The lawsuit<\/span> also targets Binance CEO Brian Shroder and was filed Monday in the Northern District Court of California. In it, the plaintiffs claim that Binance violated US securities laws and that they were misled by the platform’s false advertising. The suit points out ads that Binance was running as recently as April, endorsing UST as “safe.” Another Binance video ad referenced in the suit described UST as \u201cfiat-backed,\u201d when that was never exactly the case.<\/p>\n

“Investors who purchased UST on Binance US were wiped out, learning quickly that, contrary to Binance US’s advertisements, UST was not ‘safe,’ ‘stable,’ or ‘fiat-backed,'” reads the lawsuit. “Since the collapse of UST, Binance US has removed its advertisements touting UST as ‘safe’ and ‘fiat-backed,’ effectively conceding that UST was none of those things,” the document continues.<\/p>\n

The head lawyer for the firm leading the class-action case tweeted out a call for UST and Luna investors to contact Roche Freeman LLP back in May. <\/p>\n