Media: Investor seeks $140 million in compensation from Binance

An unnamed investor from Europe initiated ICC arbitration against the cryptocurrency exchange Binance under the rules of the International Chamber of Commerce (ICC). The Block reports, citing a source.

According to him, the investor demanded compensation of more than $140 million due to the ‘unfair liquidation of the exchange’s assets in November 2020’. The proceedings were launched in Switzerland after several months of negotiations, the publication asserts.

According to the press, the claim concerns Binance’s automated liquidation system. It allegedly forced the investor to sell a large volume of cryptocurrency to their detriment, while the exchange allegedly allowed a conflict of interest.

The complaint is addressed to more than 45 entities worldwide, as the company does not disclose its headquarters. The initiator of the proceedings argues that all of them have ties to Binance.

The ICC Rules are used to settle international trade and investment disputes. The parties select arbitrators, and an independent mediator is also appointed.

In August, a group of international traders filed a lawsuit against the cryptocurrency exchange, accusing it of failing to provide access to its infrastructure during peak loads and of multi-million-dollar losses.

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