Binance France and its parent company Binance Holdings Limited are being sued by 15 investors in France over alleged misleading commercial practices and fraudulent concealment, according to local media reports.
In a complaint filed on Dec. 14, the plaintiffs claimed that Binance violated French laws by advertising and distributing crypto services before receiving registration from the country's authorities. As reported by Cointelegraph, France's financial market regulator, the Autorité des marchés financiers, has granted Binance a license as a digital asset provider in May 2022. The license allowed the crypto exchange to offer services such as assets custody and crypto trading.
The complaint reportedly contains screenshots showing Binance's social media activity prior to its license, including a Telegram channel dubbed "Binance French".Binance also addressed questions regarding Terra stablecoin advertisement in the country. The company noted that its communication presents staking with Binance as "safe, and not the underlying tokens." The exchange also noted that it always includes market risk warnings for crypto products, and has further strengthened its descriptions.
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