Investors are filing a class-action lawsuit against Binance’s American arm, Binance.US, for allegedly falsely advertising investments in the algorithmic stablecoin TerraUSD (UST) as “safe.”
Last month, algorithmic stablecoin UST lost its peg to the US dollar and collapsed along with its affiliated asset Terra (LUNA), wiping out $40 billion in crypto market capitalization.
The investors, who filed in the US District Court of Northern California, also claim Binance.US falsely advertised UST as “fiat-backed.”
Argue the investors,
“Binance.US plainly failed to comply with federal and state securities laws. Binance.US failed to disclose that UST is in fact a security, and that it is selling these securities, even though there is no registration statement in effect for them, and Binance.US itself has refused to register with the