Amid recent legal battles, Binance is due to appear in an Italian court over a class-action lawsuit filed by investors seeking compensation for losses on the platform during turbulent markets last year.
- Italian investors are making a case against Binance and its CEO, Changpeng Zhao, regarding incidents in November 2021. They allege that the exchange platform went offline and locked users out of the exchange to perform their trading activities. In turn, investors lost millions as they weren’t able to perform the right trades at the right time.
- Francesco Dagnino, a managing partner at Lexia Avvocati supported these allegations against Binance. “It is [absolutely] clear that when you are selling a future, especially with that type of leverage. It does not matter what the underlying asset is; it is always a financial product.”
- This technical issue faced by Binance is not uncommon. When big news causes an increase in crypto prices and trading volumes, users rush to exchanges in blight of FOMO. As a result, the exchanges come under extreme pressure resulting in the platforms going offline.
- Binance has not come forward with a defense statement yet. Despite its interest in expanding its exchange platform toward the Italian market and people, Dagino hopes that the exchange platform will clarify these matters in due time. The court case will proceed as planned without Binance present, which strips them of future rights to file a defense.
See Related: Binance To Merge Stablecoin Competitors Into $BUSD
