Binance.US suffers a class action for sale of luna and TerraUSD

A class action lawsuit has been filed against Binance.US over the sale of luna and TerraUSD (UST) to buyers in the US.

Binance.US is the American arm of global crypto exchange Binance.

Filed in the Northern District of California on Monday, the lawsuit alleges that Binance.US sold unregistered securities to the plaintiffs, misleading them in the process.

In conjunction with this, the plaintiffs allege that Binance.US promoted the sale of UST and participated in airdrops of tokens which were “designed to increase trading volume.”

A Binance.US spokesperson said that luna was never listed on the Binance.US platform. They also said that UST was delisted from the platform last night.

The move comes following the death spiral of UST, Terra’s algorithmic stablecoin, which erased more than $40 billion in value from the market almost overnight.

Terraform Labs CEO Do Kwon has since tried to make amends for lost funds, by airdropping luna 2.0 to holders.

The lawsuit, which is being brought by law firms Roche Freedman and Dontzin Nagy & Fleissig, could be the first of a number of legal complaints triggered by the breakdown of UST in May.

If successful, it could also go some way to doing what governments have been thus far unable to do: put more clear parameters around the legal status of centralized finance (DeFi) and who is culpable when something goes wrong.