Crypto News :
Binance US, the US affiliate of Binance, is facing a $1 billion lawsuit filed by two Florida residents and a person from California, along with three Binance international entities, Changpeng Zhao (Binance CEO), and three influencers, Jimmy Butler of the Miami Heat, Ben Armstrong (BitBoy) and another unidentified influencer.
The lawsuit alleges that Binance facilitated the trading of unregistered securities and that influencers were paid to promote them. The plaintiffs seek compensation for losses incurred after purchasing instruments classified as investment contracts under the SEC’s purview, meeting the Howey Test criteria for securities.
The plaintiffs’ lawyers assert that assets listed by Binance and promoted by their influencers are unregistered securities under Floridian and Californian securities laws.
The plaintiffs’ lawyers have been investigating tokens listed by Binance for over a year and want their clients to be compensated. The CFTC is also suing Binance and Changpeng Zhao for violating US trading laws.
Whether the tokens listed are securities will be determined by the Florida court, and if they are, Binance and the influencers will be held liable.