Binance faces lawsuit

Although it is not easy to fight Binance for legal reasons due to the decentralization, Binance is currently still facing a lawsuit from users.

Binance is facing a lawsuit

When cryptocurrencies suddenly crashed one after the other in mid-May, Binance froze, leaving its users stranded in the middle of a crypto apocalypse. Two months ago, the world’s largest cryptocurrency exchange froze, damaging hundreds of thousands of traders. Many traders want to file a complaint against the exchange, but the fact that Binance is not headquartered makes it difficult for them to reach the appropriate authorities.

After that, the lawsuit continued. Over 700 traders, with the help of their lawyer Aija Lejniece, jointly file a lawsuit against Binance. However, dragging Binance down is not easy as no one has a trace at headquarters. Binance declared itself a “truly decentralized” exchange after being exposed to regulatory measures from multiple countries.

Binance is facing a lawsuit Binance traders left in shock and fall

One of the traders on the Anand Singhal platform experienced a “seven minutes of hell” when all of his savings, including the more than $ 24,000 he made from trading, disappeared on May 19 when Binance saw him and thousands other user froze. Nobody can sell all of their coins when BTC and other cryptocurrencies crash.

“Binance hurt me, I’ll never trade again,” Anand told the Wall Street Journal.

As a result, some have little left to cover their losses while others are left behind. Many traders have bets based on Binance’s BTC which allows them to wager more money than they have in their account. Binance has enabled up to $ 125 worth of leverage in crypto for every dollar a trader has in their account.

After losing the bet, the loss was blown away and all stocks were liquidated from the exchange. Nothing different than what can happen to a lot of people in Las Vegas, but Anand Singhal didn’t gamble for pleasure or greed, he made a calculated transaction but failed in the system. Binance’s system cost him and many others a fortune.

Binance’s legal troubles have increased over the past month as it faces regulatory backlash from five different countries, and the current lawsuit only aggravates its legal troubles.

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