Binance Sued by French Investors for Allegedly Causing Over 2.4 Million Euros in Losses

The plaintiffs also claim to have lost over 2.4 million euros following the collapse of TerraUSD (UST), which Binance had advertised as being backed by the US dollar.

In a blog post, Binance France responded to questions about the lawsuit. The company stated that it did not conduct any promotional communications in France during the relevant period and that Telegram groups are global community forums where users can join channels voluntarily.

Binance also addressed questions about its advertising of the Terra stablecoin in France, stating 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 cryptocurrency products and has strengthened its descriptions.

As previously reported, a series of events in May 2022 led to a dramatic decline in the price of the LUNA token and its associated stablecoin, TerraUSD (UST), which was designed to maintain algorithmic parity with the US dollar but lost its peg and plummeted to below $0.30.