{"id":62852,"date":"2022-06-13T19:11:41","date_gmt":"2022-06-13T16:11:41","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62852"},"modified":"2025-09-05T20:28:33","modified_gmt":"2025-09-05T17:28:33","slug":"lawsuit-filed-against-binance-us-over-sale-of-luna-and-ust","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/lawsuit-filed-against-binance-us-over-sale-of-luna-and-ust\/","title":{"rendered":"Lawsuit filed against Binance.US over sale of LUNA and UST"},"content":{"rendered":"<p>The law firm Roche Freedman LLP, on behalf of investors in LUNA and TerraUSD (UST)<a href=\\\"https:\/\/www.docdroid.net\/zl5YX9G\/binance-us-luna-class-action-pdf#page=44\\\">filed<\/a> a class-action lawsuit against Binance&#8217;s US subsidiary and the company&#8217;s CEO Brian Shroder.<\/p>\n<p>According to the 72-page complaint, Binance.US offered unregistered securities to U.S. residents, misleading them. The lawyers noted that the unit was not registered as a broker-dealer, in violation of local law.<\/p>\n<p>The investors contend that the exchange&#8217;s subsidiary facilitated the sale of UST and participated in an airdrop of tokens &#8216;intended to increase trading volume&#8217;.<\/p>\n<p>In May, Roche Freedman LLP partner Kyle Roche contacted LUNA and UST investors who bought assets on Coinbase, Gemini and Binance, asking them to reach out to the firm for &#8216;assistance&#8217;.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">If you purchased <a href=\"https:\/\/twitter.com\/search?q=%24LUNA&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUNA<\/a> or <a href=\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$UST<\/a> on either <a href=\"https:\/\/twitter.com\/coinbase?ref_src=twsrc%5Etfw\">@coinbase<\/a> <a href=\"https:\/\/twitter.com\/krakenfx?ref_src=twsrc%5Etfw\">@krakenfx<\/a> <a href=\"https:\/\/twitter.com\/binance?ref_src=twsrc%5Etfw\">@binance<\/a> or <a href=\"https:\/\/twitter.com\/Gemini?ref_src=twsrc%5Etfw\">@Gemini<\/a>, please reach out to TerraRecovery@rochefreedman.com . My firm is coordinating an effort to help those who lost funds from the recent collapse of <a href=\"https:\/\/twitter.com\/hashtag\/terra?src=hash&#038;ref_src=twsrc%5Etfw\">#terra<\/a> and <a href=\"https:\/\/twitter.com\/hashtag\/luna?src=hash&#038;ref_src=twsrc%5Etfw\">#luna<\/a>.<\/p>\n<p>\u2014 Kyle Roche (@KyleWRoche) <a href=\"https:\/\/twitter.com\/KyleWRoche\/status\/1525079906832482304?ref_src=twsrc%5Etfw\">May 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Prices of UST and LUNA<a href=\\\"https:\/\/forklog.io\/stejblkoin-ust-utratil-privyazku-k-dollaru-ssha-na-fone-obvala-kriptorynka\/\\\"> began to fall on May 10<\/a>. This occurred amid outflows from the Anchor protocol as the yield on deposits fell to 17.87%. As a result, on May 8, the &#8216;stablecoin&#8217; briefly lost its peg to the dollar.<\/p>\n<p>The decline continued on May 11, followed by the LUNA used to mint the algorithmic stablecoin plunging to $0.3.<\/p>\n<p>On May 28, Do Kwon<a href=\"https:\/\/u1f987.com\/en\/news\/developers-launch-terra-2-0-mainnet-phoenix-1\"> announced<\/a> the launch of the Terra 2.0 mainnet. The listing of new LUNA tokens<a href=\"https:\/\/u1f987.com\/en\/news\/developers-launch-terra-2-0-mainnet-phoenix-1\"> was supported<\/a> by many centralized exchanges, including Binance, Huobi and Kraken.<\/p>\n<p>Earlier, Binance CEO Changpeng Zhao<a href=\"https:\/\/u1f987.com\/en\/news\/changpeng-zhao-reveals-binance-losses-from-terra-investments\"> revealed the company&#8217;s losses<\/a> from its Terra investments. He also stated that<a href=\"https:\/\/u1f987.com\/en\/news\/changpeng-zhao-says-binance-did-not-profit-from-terra-collapse\"> the exchange did not profit<\/a> from this and has always prioritised user protection.<\/p>\n<p>After the collapse, South Korea&#8217;s financial regulators<a href=\"https:\/\/u1f987.com\/en\/news\/terra-ecosystem-collapse-draws-regulators-attention-in-south-korea\"> held an emergency meeting<\/a> to assess the incident&#8217;s fallout. According to local media, authorities began<a href=\"https:\/\/u1f987.com\/en\/news\/journalists-report-probe-into-terraform-labs-staff-in-south-korea\"> an investigation into Terraform Labs employees<\/a> as part of the inquiry.<\/p>\n<p>In May, one of South Korea&#8217;s leading law firms, LKB &#038; Partners, announced plans<a href=\"https:\/\/u1f987.com\/en\/news\/south-korea-to-sue-terraform-labs-ceo-over-ust-collapse\"> to sue Kwon<\/a>.<\/p>\n<p>Recall, in June Bloomberg sources reported that the U.S. Securities and Exchange Commission<a href=\"https:\/\/u1f987.com\/en\/news\/media-sec-opens-investigation-into-terrausd-ust-stablecoin\"> had opened an investigation<\/a> into UST.<\/p>\n<p>Subscribe to ForkLog&#8217;s channel on <a href=\\\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The law firm Roche Freedman LLP, on behalf of investors in LUNA and TerraUSD (UST), filed a class-action lawsuit against Binance&#8217;s US subsidiary and the company&#8217;s CEO Brian Shroder.<\/p>\n","protected":false},"author":1,"featured_media":62853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,852,26],"class_list":["post-62852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-terra","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=62852"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62852\/revisions"}],"predecessor-version":[{"id":62854,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/62852\/revisions\/62854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/62853"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=62852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=62852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=62852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}