A group of French investors has filed a complaint against Binance’s local unit for misleading conduct and non-compliance with national law. Reuters reports.
According to the agency, the exchange’s clients filed a complaint with the Paris prosecutor’s office. They allege that Binance carried out marketing campaigns on Instagram and Telegram before receiving authorisation to operate from the country’s authorities.
According to local media, the complaint was filed on 14 December on behalf of 15 investors. They also claim that the exchange advertised algorithmic stablecoin UST as USD-backed. After the Terra collapse they allegedly lost more than €2.4 million.
In a blog post, Binance’s French arm noted that it did not run marketing campaigns during the period in question. The exchange also stressed that it always warns users about the risks of investing in crypto-assets.
In November 2021, Changpeng Zhao announced plans to obtain France’s status as a digital asset service provider and to open a regional headquarters. At the same time the exchange announced a joint France FinTech initiative to support local blockchain startups in the amount of €100m.
In May 2022 the company became the holder of a licence provider of services on the digital-asset market from the AMF with the consent of the ACPR.
In December, Reuters, citing unnamed sources, reported disagreements within the U.S. Department of Justice over charges against Binance’s leadership.
Earlier, the agency cited data showing that since 2018 the exchange processed Iran-related transactions worth $8 billion, despite U.S. sanctions.
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