CZ, the CEO of Binance, and three other key players in the cryptocurrency sector are reportedly parties to a $1 billion lawsuit. These four people are the targets of a lawsuit alleging they participated in a fraudulent securities offering involving digital tokens. According to reports, the tokens are being offered for sale to investors as unregistered securities with no backing from or supervision from the law.
New Legal Issues Arise for Binance
On the evening of March 31, two prominent law firms – the Moscowitz Law Firm and Boies Schiller Flexner – filed a class action lawsuit against the US subsidiary of Binance, one of the largest exchanges in the world.
The complaint also included three of its major international entities, CEO Changpeng Zhao (CZ), renowned basketball player Jimmy Butler of the Miami Heat, and two other crypto influencers. This marks a new wave of legal trouble for Binance, which has become one of the most-used cryptocurrency exchanges since its launch in 2017.
Previous Crypto War in Moscowitz
The renowned law firms of Moscowitz & Associates and Fox Law’s long-standing legal alliance had to withstand a turbulent time involving cryptocurrency companies.
As reported by Fortune, the two firms worked together to pursue a class action lawsuit against Voyager, a company that had eventually gone bankrupt. Additionally, they initiated two separate lawsuits in regard to the sudden collapse of FTX. The situation posed a unique challenge to their professional relationship as it capped off an intense period of legal proceedings with regard to crypto-based enterprises.
