French investors accuse Binance of misleading business practices and demand compensation for their 2.4 million euros in losses

ChainCatcher news, according to Cointelegraph, Binance France and its parent company have been sued by 15 French investors for alleged misleading business practices and fraudulent concealment. The complaint includes screenshots of Binance's social media activities prior to obtaining a license, including a Telegram channel called "Binance French." The plaintiffs also claim to have lost over 2.4 million euros after the collapse of TerraUSD (UST), which Binance had promoted as being dollar-backed.

Binance France responded to inquiries regarding the case. The company reportedly did not engage in any promotional activities in France during the period in question and noted that "Telegram groups are global community forums," allowing users to voluntarily create and join channels. Furthermore, Binance's promotions were for "security, not underlying tokens," and always included market risk warnings for crypto products.

It is reported that the French financial market regulator Autorité des marchés financiers granted Binance a license as a digital asset provider in May 2022. This license allows the crypto exchange to offer services such as asset custody and crypto trading. (Cointelegraph)