Unjustified liquidation: Investor demands $140 million in compensation from BinanceUnnamed European investor initiated litigation against the casino exchange Binance under the rules of the International Chamber of Commerce (ICC) for more than $ 140 million, reports The Block. It is worth noting that in Europe, Binance is not the first legal action, the company Lexia Avvocati in the EU has raised a lawsuit for tens of millions of euros over the actions of Binance against their own users.
The investor is seeking more than $140 million in compensation, claiming it was unjustifiably liquidated in November 2020. He brought his claims against more than 45 entities (legal entities) in different parts of the world, which, he claims, are associated with Binance. The proceedings were opened in Switzerland after months of negotiations with Binance representatives.
The press service of Binance stated that they do not comment on the current or unresolved legal issues, thereby declining to comment on the substance of the matter.
The investor's main complaint relates to Binance's automatic liquidation system. He claims that the exchange forced him to sell a large amount of cryptocurrency, thereby violating his interests. The investor is also convinced that Binance had a conflict of interest in the liquidation process. In our opinion and experience, negotiations with Binance are a waste of time, Binance Support Center does not solve such issues, and the management is busy with personal enrichment and public lies, rather than a real solution to users' problems.
The rules of the International Chamber of Commerce are used to resolve conflicts on a supranational scale. According to the established procedures, each of the two parties chooses a mediator; a third independent mediator is also appointed. In this way, the process differs from a standard trial, which involves a judge and a jury. At the same time, Binance is facing a separate lawsuit from six customers. They are claiming because of the disruption of the exchange on May 19, when the price of bitcoin experienced a precipitous collapse. The claimed losses in the case amount to over $20 million. Since the announcement, more than a thousand people have joined the group, raising over $5 to litigate with the exchange through the White & Case process.
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