Binance Is Hearing This Week Because Of Being Sued In Italy
Binance is expected to appear in an Italian class action lawsuit alleging 2021 outages. The investors who filed the complaint claim that the exchange was down during important trading hours and are seeking compensation for their losses.
Binance is scheduled to appear in an Italian court on Thursday in connection with a class-action complaint launched by a group of investors demanding damages for losses incurred amid platform failures during important trading periods last year.
The lawsuit was launched in November 2021, with the investors claiming that the interruption occurred during a vital trading period. Many exchanges experienced disruptions in 2021 as a result of many incidents that caused big price movements, which they planned to capitalize on.
For example, once Tesla announced a $1.5 billion investment in Bitcoin in February 2021, Binance, Gemini, and Kraken all experienced outages.
The lawsuit also claims that Binance breached Italian financial regulations by allowing Italian customers to trade leveraged futures on the platform. Futures are contracts to sell an item at a predetermined price and time in the future.
According to Italian officials, the exchange is not permitted to function in the country in 2021. It has since made steps to obtain approval, just as it has in other countries.
It was a success, and it received regulatory approval in May 2022. Binance was required to have a physical presence and a promise to comply with AML standards as part of the approval.
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