A new lawsuit has been filed against Binance, CEO Changpeng “CZ” Zhao and three crypto influencers for promoting unregistered securities. The Moscowitz Law Firm and Boies Schiller Flexner filed the $1bn lawsuit in the Southern District of Florida, claiming Binance’s involvement in trading unregistered securities and paying influencers for the unlawful promotion of such services. The suit claims that investors have no obligation to prove they were influenced by the advertisements, and while three American citizens brought the case, it alleges that “millions” of people could be eligible for damages. In upcoming filings, the law firm intends to add additional Binance influencers to the lawsuit.
The lawsuit is the latest legal action against Binance and follows a case brought by the United States Commodity Futures Trading Commission (CFTC) for alleged trading violations. Binance and CZ are also accused of concealing the crypto exchange’s ties to China. Binance has verified that it doesn’t conduct operations in China and neither it possesses any technology, such as servers or data, located in China. According to Binance, its 8,000 full-time employees live across Europe, the Americas, the Middle East, Africa and the Asia-Pacific.