Legal

Binance Faces Another Lawsuit Against Illicit Market Manipulation.

Leading cryptocurrency exchange Binance is facing another lawsuit against allegations of market manipulation and dealing against the interest of its users.

Within an official tweet earlier on Monday, Binance seemingly laid the blame for any claims of manipulating the cryptocurrency market on publications spreading fear, uncertainty, and doubt, as well as certain individuals impersonating employees at the exchange. The firm revealed that it “reserves the proper rights to take legal action to guard its interests,” but wasn’t against “responsible whistle-blowing that ensures the trust of our community.”

“Binance has never traded against our users nor manipulated the market, and that we never will,” outlined the exchange.

It’s unclear if the exchange was pertaining to any specific incident, but the statement comes after a pseudonymous Twitter user beneath the name RealFulltimeApe alleged on Saturday that Binance “keeps a summary of massive liquidity levels and purposely pumps/dumps the worth to make them out for profit.” The user claims to be a former “big data engineer” at the exchange and would be “providing proof soon,” but has not shared any evidence at the time of reporting.

“I have multiple audio and video files inside the office within which management is CLEARLY talking about ‘quickly’ liquidating the overleveraged ‘longs and shorts’ prior permitting price to continue up/down, so as to extend the companies’ insurance fund & profits,” claimed the user.

Binance Holdings Limited has been the target of authorities in multiple countries along with Italy, Malaysia, Poland, Germany, the U.K., the Cayman Islands, Thailand, Canada, Japan, Singapore, and therefore the Netherlands, warning investors to exercise caution with regard to the firm or claiming it had been operating illegally. The warnings from regulators have likely led to some financial institutions not permitting their users to transfer any payments to the exchange.

The exchange is additionally in more than one class-action lawsuit alleging it violated its rules on futures trading. Italy-based legal and consulting company Lexia Avvocati revealed earlier in July that it had been representing investors who lost “tens of millions” of dollars due to not having the ability to manage their trading positions and consider their balances due to the cryptocurrency exchange going offline for several hours on different days. Liti Capital, a Switzerland-based litigation funding provider, has made similar allegations in another separate class-action lawsuit filed earliera in August.

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