An international group of six traders from the United States, Ukraine, France, and Australia has blamed the largest cryptocurrency exchange Binance. According to them, the company was unable to provide stable work on May 19, when the rates of all cryptocurrencies plummeted after Bitcoin due to pressure from the Chinese authorities.
Traders claim that due to Binance's mistake, their losses amounted to more than $20 million. Then the failures in the exchange led to significant losses of funds for many investors. And while Binance regularly handles such situations, some are still awaiting damages due to the inoperability of the platform at the end of May.
Liti Capital became the sponsor of the litigation on the part of the plaintiffs. A Swiss company set aside $5 million to file a class-action lawsuit against Binance. They clarified that in May, for several hours, 700,000 or even more clients of the exchange were unable to access their assets, thereby avoiding monetary losses. Their total losses, according to representatives of Liti Capital, may exceed $100 million.
Liti Capital, together with a group of traders, will form an international arbitration lawsuit against Binance on behalf of the affected investors and will be ready to officially file it in Hong Kong next month.
Binance officials said they are not considering “hypothetical cases'' such as “unrealized profits''. Therefore, if customers made such claims, then the best that the Binance team could offer them was a good discount. At the same time, the employees of the exchange stressed that they do not comment on unresolved legal issues.
Liti Capital CEO David Kay also stressed that Binance does not have an official headquarters, which is why customers constantly face various difficulties when trying to get cash compensation. He believes that the exchange has created a system that does not allow regulating their activities and does not require them to bear due responsibility to users in case of disputable situations.
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