Binance Faces Legal Challenge Over Allegations of Securities Law Breaches and Crypto Market Dominance

Cryptocurrency giant Binance is in a legal battle The allegations levelled against Binance include violations of the Securities Exchange Act and California's laws on unfair competition. The class action suit intends to represent individuals who invested in FTX during a tumultuous market period between November 6 and November 8, 2022. lawsuit The lawsuit further contends that Binance, alongside its CEO Changpeng Zhao (CZ), openly recognized their competitive rivalry with FTX and its founders, largely driven by regulatory disputes.

"When an opening to inflict harm on the FTX Entities was presented, Zhao acted swiftly to trigger the stock's downfall in the marketplace, causing damage to the Plaintiff and the Class,\" the legal document asserts.

CZ's maneuvers, including raising questions about the FTX-issued token FTT and disclosing Binance's decision to sell off its FTT holdings on November 6, 2022, are alleged to have precipitated a mass withdrawal of customers from FTX, triggering serious market turmoil and financial strain on FTX operations.

Last year, as part of Binance's divestiture from FTX equity, the firm reportedly received approximately $2.1 billion USD in cash equivalent (comprising BUSD and FTT). In light of recent developments that have surfaced, we've resolved to liquidate any remaining FTT assets on our books. 1/4

Originally established in China, Binance has now relocated its operations to the Cayman Islands. The lawsuit also points to allegations regarding its ongoing activities in China. This latest legal challenge adds to the mounting troubles Binance is experiencing, as the Securities and Exchange Commission (SEC) has also recently taken action against the exchange and its CEO for allegedly mismanaging customer funds and breaching securities regulations. The ongoing legal struggles highlight the heightened regulatory scrutiny that the cryptocurrency sector is facing worldwide.

Binance Sets Its Sights on Legal Victory Following Ripple's Success Against the SEC filed a lawsuit Binance.US Faces Increased Regulatory Attention as SEC Raises Compliance and Custody Issues

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