Australian investors adversely impacted by Binance are considering filing a class-action lawsuit to recoup their losses
As reported by the Daily Telegraph, Aussie mum and dad cryptocurrency traders say they have lost small fortunes during outages on the world’s biggest exchange, Binance. This makes them unhappy with the compensation offers and is considering filing a class-action lawsuit with this exchange of Changpeng Zhao (CZ).
Angry Aussie crypto investors eye Binance class action
While Australia was more advanced with its regulation compared with other economies, much more still needed to be done to prevent everyday investors from being exploited by dodgy operators.
But in today’s story, Binance may have been wronged. From February to May, due to erratic market fluctuations, prices went up and down quickly, leading investors to take advantage of opportunities to gain access to the trading platform. This causes transactions on the exchange to be congested.
Hundreds of reports indicating problems at Binance were registered by website health checker DownDetector. Some users took to social media to express their frustrations at not being able to either cash out their holdings or buy the dip.
A report from the Daily Telegraph stated:
“Binance and other crypto exchanges experienced several clashes between February and May, as periods of market volatility had investors scrambling to access the platforms.”
Among them, Australian investors are those who claim to be adversely affected by repeated system crashes on the crypto exchange Binance. They are not satisfied with the compensation offers and are considering filing a class-action lawsuit to cover their losses.
Leading the crowd is crypto investor Francis Kim in Melbourne. Kim started looking for other Binance users to join a class-action lawsuit after the May 19 outage cost him $181,000 but Binance only offered him $60,000 in compensation.
Kim found 10 other Australians who suffered damages totaling $1.2 million, but because that amount cannot justify pursuing a class action, the team is now looking into further cases all over the world.
Australia does not currently regulate cryptocurrency exchanges, although the Senate Committee is submitting ways to update Australian crypto regulations. The Australian Securities and Investments Commission considers that investors are not protected if they suffer losses due to technical problems or system failures.
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