• Written by: Rudy Fares
  • Mon, 13 Jun 2022
  •   Germany

Will BNB crash further because of the lawsuit? Is Binance safe as a crypto exchange? What happened to the Binance lawsuit? More info here.

BAD NEWS! Binance receives a Class Action Lawsuit, Sell BNB NOW?

What is Binance?

Why did Binance receive a lawsuit?

After the crash of the well-known crypto project Terra, LUNA and UST investors were left to dust. The Reddit forum of Terra was filled with angry investors and even with suicidal posts. Apparently, a group of investors decided to gather and jointly file a class-action lawsuit in North Carolina. They claimed that Binance misled Terra investors by marketing UST as a strong stablecoin. The lawsuit is also targeting Brian Shroder, the CEO of Binance US.

How did BNB Price react to the Binance Lawsuit?

BNB price is in a very risky situation. From one side, the cryptocurrency market as a whole is collapsing, losing more than $1 Trillion in valuation since the beginning of 2022. On the other side, Binance as a company gets slammed by a class-action lawsuit.

As a result, BNB prices crashed even lower than the support price of $270, and reached a current price of $220. From how things are looking, BNB is eyeing the next support price of $200, which is also another psychological price area.

What will happen to cryptos if Binance loses the lawsuit?

If Binance loses its battle over the lawsuit, there will definitely be another panic in the market, not only for BNB investors. In fact, every trader who uses Binance, or every DeFi project listed on Binance, using BSC or even ICO projects, are going to be shaken down further.

That’s why many analysts predicted that Terra’s downfall will have a bigger problem for other crypto projects. From other stablecoins like Tether, to crypto exchanges such as Binance…the bloodbath is continuing.

Will Binance win the lawsuit?

The Judge will most likely check the marketing campaigns and online writings that Binance used to advertise for Terra (UST or LUNA) and see whether there was any sign of a pump or hype. If no material were found plausible, Binance is surely to win.