A Lawsuit Alleges Binance.US and CEO CZ Attempted to Monopolize the Cryptocurrency Market
A class-action lawsuit has been filed against Binance.US and Binance CEO Changpeng Zhao, accusing them of violating federal and California laws on unfair competition. The lawsuit claims that Binance.US and CZ attempted to monopolize the cryptocurrency market by harming their competitor FTX. The suit was brought by Nir Lahav, a California resident.
Posts on Twitter and FTX’s Collapse
The lawsuit centers around tweets made by Zhao on Twitter in early November, just before FTX’s collapse. The defendants decided to liquidate their holdings in FTX’s utility token FTT on November 6. The plaintiffs estimated that Binance owned up to 5% of all FTT tokens. The next day, Zhao tweeted that Binance had signed a letter of intent to acquire FTX but backed out of the deal shortly after.
Allegations of Harm to FTX Entities
The lawsuit alleges that Zhao’s public dissemination of information about the withdrawal of the acquisition offer on social media platforms was intended to harm FTX Entities, leading to their collapse. The suit argues that this information caused a decline in the price of FTT in the market.
False and Misleading Tweet
The lawsuit claims that Zhao’s tweet on November 6, stating that Binance had decided to liquidate any remaining FTT on their books due to recent revelations, was false and misleading. According to the plaintiffs, Binance had already sold its FTT holdings, and the tweet was intended to further decrease the price of FTT in the market.
Hot Take: Lawsuit Accuses Binance.US and CZ of Unfair Competition
A class-action lawsuit has been filed against Binance.US and CEO Changpeng Zhao, alleging violations of federal and California laws on unfair competition. The lawsuit claims that Binance.US and CZ attempted to monopolize the cryptocurrency market by harming their competitor FTX. The lawsuit focuses on tweets made by Zhao on Twitter before FTX’s collapse, accusing him of disseminating false and misleading information to cause a decline in FTT’s price. This lawsuit highlights the ongoing legal challenges faced by major players in the cryptocurrency industry and raises questions about fair competition practices within the market.
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