The US Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against Binance, a popular cryptocurrency exchange, and its founder, Changpeng Zhao.
In a new development, another lawsuit has emerged, this time in the amount of $1 billion.
Filed by law firms Moscowitz and Boies Schiller Flexner in the Southern District of Florida, the suit accuses Changpeng Zhao, Binance, and three “cryptocurrency bloggers” of engaging in unregistered trading in crypto-currency securities and promoting such services.
The plaintiffs allege that Binance is promoting the sale of unlisted securities, and have been investigating this issue for over a year.
In the lawsuit, Zhao and his associates are referred to as “possible causes” of financial losses suffered by Binance customers.
Lawyers argue that investors do not need to prove that they were influenced by advertising.
Although the original plaintiffs are three law firm clients, Binance’s actions could have affected millions of people.
Lawyers also suggest the possibility of legal action against other “crypto influencers.”
Previously, Zhao denied the CFTC’s accusations and emphasized that Binance is fully compliant with regulatory requirements.
However, the allegations persist and have now led to multiple lawsuits against the exchange and its founder.