Binance is being sued for Luna

 Binance in the US is accused of misleading investors around the Terra blockchain ecosystem

In addition, is also accused of not being registered as a broker or exchange. This is an indication that the exchange may be in violation of securities laws, as UST, Luna and many other tokens on the platform "act like security tokens".

This is considered the first major lawsuit in the US involving Binance and Terraform Labs - the company behind UST and Luna, two tokens that plunged and wiped out more than 40 billion USD in value last month. According to Fortune, if the outcome is in favor of the plaintiff, the lawsuit will be a big blow to the cryptocurrency market in the US, especially those involved in decentralized finance (DeFi) and the CEO of the centralized exchange. like Binance or Coinbase.

Meanwhile, more than 2,000 people invested in Luna and UST are also preparing to file lawsuits against Terraform Labs and organizations on the grounds of deliberately "misleading advertising" of participants. The representative of this group is FatmanTerra, a well-known account in the Luna community.

"We will start by filing a series of class-action lawsuits against different exchanges. I will play a role in helping people reach and connect victims, and finally gather in groups to fight against the victims. back to Terraform Labs," FatmanTerra told CoinDesk.

Regarding the lawsuit against, FatmanTerra argued that the ads the platform put out were misleading people. "The publicity that a coin has a 1:1 price ratio to the USD without informing the risks involved is a scam. It is not only morally unscrupulous, in my opinion, it is also illegal," FatmanTerra said.

Besides facing lawsuits, Terraform Labs is currently under the radar of the US Securities and Exchange Commission (SEC) and the Korean regulator. According to JTBC, the SEC worked remotely with several key TerraForm Labs employees, focusing on the weak designs of the Luna project. Meanwhile, the securities and financial crime investigation team of the Seoul Southern District Prosecutor's Office has summoned all employees of Terraform Labs to assess the collapse of two tokens managed by this company. Kwon alone may have to testify before the Korean parliament next time.

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