BINANCE.FI
id: 656
Binance (BNB) Investors Settlement
The settlement terms have been submitted to the court for approval.
$340,000
Cash SettlementS.D. Florida
Court1:23-cv-21261
Case numberBinance has reached a settlement with $BNB investors over claims that it misled them about compliance issues and unregistered securities, impacting the value of Binance-linked assets.
Overview
In 2023, Binance was accused of failing to comply with U.S. trading and registration requirements while actively promoting unregistered securities, including its BNB token. The BNB burn program and influencer promotions gave the impression of growing demand, which boosted prices and misled investors about the token’s real value. When this news came out, Binance faced a lawsuit from investors.
Timeline
- March 27, 2023 – The CFTC filed a lawsuit against Binance and CEO Changpeng Zhao, alleging violations of U.S. trading and compliance regulations.
- March 31, 2023 – Investors filed a lawsuit against Binance over hidden issues with regulatory compliance and unregistered securities.
- November 21, 2023 – The SEC charged Binance with multiple securities law violations, increasing legal pressure.
- January 2024 – Reports revealed Binance’s ongoing failure to comply with U.S. registration requirements while continuing to promote BNB and other unregistered securities.
- April 30, 2024 – Binance agreed to pay $4.3 billion in penalties to resolve U.S. regulatory violations.
- August 19, 2024 – Binance agreed to settle with investors.
Background
On March 27, 2023, the CFTC sued Binance and CEO Changpeng Zhao, alleging trading violations and failure to comply with U.S. laws. The BNB burn program was at the center of these regulatory concerns, with authorities arguing it effectively made BNB an unregistered security.
Additionally, Binance allegedly leveraged social media influencers to market BNB and other digital assets, misrepresenting their legitimacy and downplaying regulatory risks.
4 days later, investors filed a lawsuit against Binance over hiding compliance risks.
Later that year, the SEC also charged the company with multiple securities law violations.
And, in January 2024 reports revealed that Binance was still failing to meet U.S. registration requirements while continuing to promote unregistered tokens.
By April 2024, Binance agreed to pay $4.3 billion in penalties to resolve these regulatory claims. However, the company continued to face investor lawsuits, including claims related to unregistered securities and misleading marketing.
What Can Investors Expect Now?
Binance has reached a settlement with $BNB investors over claims that it misled them about compliance issues and unregistered securities, impacting the value of Binance-linked assets.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Stipulative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Fraud,
Failure to Disclose,
Price manipulation,
Malpractice,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Shareholder,
Influencer,
Service Provider
Security Type
Crypto Asset
Trade Direction
Long
Filing date
03/31/2023
Lead Plaintiff Deadline
06/01/2023
Plaintiffs
Michael Sizemore; Mikey Vongdara; Gordon Lewis
Attorneys
Moscowitz Law Firm, Boies Schiller Flexner
Defendants
Changpeng ‘CZ’ Zhao, Jimmy Butler, Graham Stephan, Ben Armstrong’ Bitboy’
Judge
Roy K. Altman
Administrator
JND Legal Administration
Settlement agreement date
2024-08-19
Trades matching type
FIFO