On December 25, according to media reports, French investors filed an indictment against Binance France and its parent company, Binance, for alleged misleading business practices and fraudulent concealment.
The plaintiffs, who are 15 investors from France, allege in the suit filed on December 14 that Binance violated French law by advertising and distributing cryptocurrency services before obtaining registration from France’s authorities. France’s financial markets regulator reportedly issued a license to Binance as a digital asset provider in May 2022. The license allows Binance’s cryptocurrency exchange to offer services such as asset custody and cryptocurrency trading.
Screenshots of the suit reportedly show Binance’s social media activity prior to obtaining the license, including a series of actions by a Telegram account known as “Binance France.” The plaintiffs allege that because Binance claimed that TerraUSD was backed by U.S. dollars, it caused these customers to lose up to €2.4 million in direct damages when the UST collapsed. Binance must compensate for losses caused by misleading and fraudulent concealment.