Binance faces legal challenges and temporary halts amidst crypto promotion and CFTC lawsuit.

1 min read
Source: Fortune
Binance faces legal challenges and temporary halts amidst crypto promotion and CFTC lawsuit.
Photo: Fortune
TL;DR

Binance, its founder Changpeng Zhao, and NBA star Jimmy Butler are facing a $1 billion class action suit for promoting unregistered securities. The suit alleges that Binance traded cryptocurrencies that are in reality unregistered securities, and that social media influencers paid by Binance promoted these instruments unlawfully. The plaintiffs are seeking damages in excess of $1 billion from the Binance companies and the influencers. The suit is potentially a pivotal one for the crypto industry, as it could lead to a retreat of social media influencers who have boosted the industry.

Share this article

Want the full story? Read the original reporting

Read on Fortune