The question of whether Binance is the public enemy no. 1 has been raised in recent times, and now it seems like the answer is a resounding yes. Two law firms have filed a lawsuit against Binance, its CEO Changpeng Zhao (CZ), and several individuals who were considered as influencers. The lawsuit is related to the sale and promotion of the Binance Coin (BNB), which is considered an unregistered financial security.
Two Law Firms Already Involved in Lawsuits against Voyager and FTX
The Miami-based Moskowitz Law Firm and the New York-based Boies Schiller Flexner LLP are the two law firms that have filed a lawsuit against Binance. These firms are famous for their class-action lawsuits against crypto companies. Last year, they filed a lawsuit against the bankrupt crypto company Voyager. More importantly, they sued FTX and individuals who had promoted the platform in the media or on social networks. This included Larry David, Shaquille O’Neal, Steph Curry, and Tom Brady. The lawsuit was based on the premise that promoting FTT was illegal because it was an unregistered financial security. This is exactly the same reason why these lawyers are now turning to Binance and its promoters.
Suing Now Binance, CZ, and Qualified Influencers
The crux of the matter is that Binance traded cryptocurrencies that were actually unregistered financial securities. Therefore, anyone who promoted them falls under the same law. Adam Moskowitz, one of the lawyers behind the lawsuit, believes that anyone who purchases unregistered securities is entitled to damages equal to all losses suffered. It is not necessary to prove or show that the defendants were deceived or influenced, only to demonstrate that they saw the announcements or publications. In addition to Binance and CZ, BitBoy Crypto and Graham Stephan are also on the bench of the accused.
Influencers’ Responsibility under the Law
This lawsuit could be a turning point in the recognition of the work and activities of so-called influencers on the internet. It raises the question of what is the role and responsibility of influencers under the law. The US justice system will have to settle once and for all whether cryptocurrencies are financial securities or commodities.
Cryptocurrencies: Financial Securities or Commodities?
This is not a new debate, and it is not limited to the US. Legislators and judges worldwide are grappling with the same question. The SEC and the CFTC are currently in dispute over the matter. In this context, it will be interesting to see how the Binance lawsuit unfolds.
Binance’s Ability to Fight Back
Binance has now reached a critical mass to be able to fight back in this kind of skirmish over regulation. However, it remains to be seen whether it will be able to withstand the onslaught of lawsuits. Binance users can sign up for the exchange and form their own opinions. By following this link, they can also save 10% on their trading fees.
In conclusion, the lawsuit against Binance, CZ, and crypto influencers highlights the ongoing struggle between regulators and the crypto industry. While crypto companies and influencers may argue that they are merely providing information and opinions, regulators and law firms are increasingly holding them accountable for their role in promoting potentially unregistered financial securities.
This lawsuit also raises important questions about the definition of financial securities and commodities in the crypto space, and the role of influencers in promoting them. As the crypto industry continues to evolve and regulators struggle to keep up, it is likely that we will see more cases like this in the future.
At the same time, Binance’s ability to fight back against these allegations demonstrates the increasing maturity of the industry and the growing power of major players within it. As the crypto industry continues to grow and evolve, it will be interesting to see how these regulatory challenges shape the future of the industry and the role of influencers within it.
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