Late on the evening of March 31, the Moscowitz Law Firm and Boies Schiller Flexner, home to super-attorney David Boies, filed a class action suit that targets Binance, its founder Changpeng Zhao (CZ)—the world’s leading spokesman for the crypto industry—and hoops star Jimmy Butler of the Miami Heat.
The new action against Binance rests on the same basic assertion: that the exchange was trading cryptocurrencies that are in reality unregistered securities, and that social media influencers paid by Binance promoted these instruments unlawfully. “This is a classic example of a centralized exchange, which is promoting the sale of an unregistered security,” charges the complaint. The suit seeks damages in excess of $1 billion, in total, from the Binance companies and the influencers. “We’ve been investigating these same unregistered security issues against Binance for over a year,” notes Moskowitz.
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