Some 15 investors have sued Binance France and its parent company, Binance Holdings Limited over violation of the country’s laws on cryptocurrency.
The suit which is accusing the firm’s of deceptive advertising said that Binance advertised and distributed cryptocurrency services to customers before it was duly registered with the country’s authorities.
The suit filed earlier this month also claimed that the plaintiffs lost about 2.4 million euros as a result of the collapse of the TerraUSD after Binance advertised it as backed by the United States Dollar.
In its response, however, Binance France denied the charges stating that it had included the market risks warnings for the products.
It also denied that it promoted any products while its license application was being reviewed.
Recall that Binance was licensed as a digital asset provider in France in May 2022 to offer services such as assets custody and crypto trading.