Binance sued in Italy. Since the world of cryptocurrencies is not yet regulated in several countries, there are many scams or irregularities taking place every day. Thus, it is not uncommon to see exchange platforms ending up in court for one case or another.
As a result, Binance is the latest platform to face such a situation. It must appear in court in Italy because of a class action brought against it for breakdowns that occurred in 2021.
A lawsuit due to material and logistical errors.
According to local media reports, the popular cryptocurrency exchange has been sued by several of its Italian users. They claim that the platform experienced outages that rendered it unusable during critical trading periods. A situation that made them lose a lot of investment opportunities. They, therefore, demand the payment of damages for the losses suffered.
Binance, however, is not the only exchange to have faced outages in 2021. Many cryptocurrency exchanges faced outages in the same year.
These crises took place because of several incidents that had a huge impact on the prices of the majority of cryptocurrencies. So, in addition to Binance, the Gemini and Kraken platforms also had service outages in February 2021. Outages that came just after Elon Musk's company Tesla said it would invest 1, $5 billion in bitcoin.
The collective complaint is the subject of a November 2021 filing in an Italian court. In addition to pointing out that the platform caused the plaintiffs to lose opportunities, the lawsuit also alleges that Binance violated financial regulations by offering leveraged futures products.
This complaint comes even as Binance is still in the middle of the process with regulators to obtain all necessary licenses to ensure compliance with the law in Italy.
Further legal action for Binance.
The lawsuit the exchange is facing in Italy is neither the first nor the last on its counter. Indeed, Binance is currently going through a real series of legal troubles in several countries around the world and especially in the United States.
A class action lawsuit has also been filed against Binance's US subsidiary in Northern California over its sale of UST tokens. American investors have formed a collective to claim compensation from the platform for the damages they suffered following the collapse of the Terra and UST ecosystem.
According to a member of Senator Cynthia Lummis' office, the majority of cryptocurrency exchanges operating in the United States are under investigation, including Binance.
The SEC has also set up an investigation unit to examine whether the platform's ICO violated US securities laws. The ICO is relative to the BNB token. The latter is one of the largest tokens in terms of market capitalization in the crypto market.
Additionally, Binance is also under investigation for a possible violation of the Bank Secrecy Act. That's news from Reuters sometime after federal prosecutors began probing the company and its CEO in December 2020.
According to a spokesperson for the crypto-currency exchange platform, the company has the means to deal with any crisis situation related to the security of its system.
Indeed, Binance employs a team of global security and compliance experts. It has more than 500 people, including former regulators and former law enforcement officers.
The platform is still accessible in Italy.
In 2021, Binance received a major blow from Italian regulators. Indeed, the latter had declared that the platform did not have the right to operate in the country, because it did not comply with the regulations. Nevertheless, the company has made efforts to receive approval.
Efforts that have borne fruit, since Binance succeeded in obtaining regulatory approval in May 2022. The latter required Binance to have a physical presence on Italian territory and to commit to complying with anti-corruption regulations. money laundering.
Regulation of the cryptocurrency industry is becoming increasingly urgent to be able to protect users and define the legal framework in which this sector can operate. In Europe, it is, in particular, MiCA that must take care of this in part.
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