Who would have thought that Binance, after paying over $4 billion in fines to the DOJ and seeing its CEO Changpeng Zhao (CZ) imprisoned, would still be in the legal spotlight? And yet, here it is. Binance and CZ are once again accused in a class action lawsuit, where investors are holding them responsible for the loss of their stolen crypto, claiming that the platform facilitated the laundering of funds.
Binance, still in bad shape
Not everything is rosy for the world's leading crypto exchange despite the fact that the 56th project is entering the Binance Launchpool. new class action complaint filed against this company and CZ highlights the crypto exchange's questionable practices. The plaintiffs accuse Binance of complicity in the laundering of their stolen fundsa serious offense that could fall under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
According to them, without the ability to launder their crypto on Binance, the thieves would have been traced on the blockchain, allowing authorities to track them down.
The matter does not end there. Bill Hughes, a regulatory lawyer at the firm Consensys, says: doubts about the plaintiffs' ability to prove these accusations. Still, he acknowledges that this case could have significant consequences for the crypto industry if it were to go to trial.
” If this case goes to trial, it will not only be Binance and CZ who will be in the dock, but the very effectiveness of blockchain analytics and the recovery of on-chain assets. ” warns Hughes.
The stakes are therefore enormous for Binance.who could find himself having to defend not only his practices, but also the credibility of an entire section of the crypto industry.
- $4.3 billion: The fine paid by Binance in November 2023.
- 4 months: the length of CZ's prison sentence.
- 3 investors: the plaintiffs behind this new class action.
A crypto exchange under constant pressure
In addition to this new complaint, Binance is facing other legal troubles, including with the SEC who has just amended his complaint. The agency accuses the exchange and CZ of having lied about its market surveillance controls and artificially inflated trading volumes.
The case, which began in June 2023, is still ongoing and could prove just as devastating to the crypto exchange's reputation.
The impact of these cases on Binance and the industry is undeniable. The platform, once considered the undisputed titan of the crypto market, now finds itself in a delicate position.
If the class action were to be tried, it could not only shake investor confidence in the issuer of BNB, but also call into question the integrity of blockchain transactions, a cornerstone of the crypto ecosystem.
Bill Hughes does not mince his words: ” Things Binance Would Be Incentivized to Say About Tracing and Recovery [des actifs] – it's a really difficult position to hold, honestly, if you care about the industry. »
A quote that sums up well the thorny situation in which the crypto exchange finds itself.
With Binance already facing multiple investigations, this new complaint could well be the final straw, especially as Nicolas Maduro tightens the screws on Binance and X following a contested election.
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