Law firm Roche Freedman LLP has filed a class action lawsuit on behalf of LUNA and TerraUSD (UST) investors against the US division of Binance and its CEO Brian Shroder.
According to the 72-page complaint, Binance.US offered unregistered securities to US citizens, misleading them. Lawyers have stressed that the division was not registered as a broker-dealer, which violates local law.
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According to investors, the exchange’s branch facilitated the sale of stablecoin UST and participated in the airdrop of tokens “designed to increase trading volume.”
In May, Roche Freedman LLP partner Kyle Roche approached LUNA and UST investors who had purchased assets on Coinbase, Gemini and Binance to contact the firm for “help.”
UST and LUNA prices began to fall on May 10 coinciding with an outflow of assets from the Anchor protocol due to a decline in the rate of return on deposits to 17.87%. As a result, as early as May 8, the “stablecoin” lost its parity with the dollar for a short period of time.