A group of French investors filed a complaint against the local Binance unit for misleading and non-compliance with the country's legislation. This is reported by Reuters.
According to the agency, the clients of the bitcoin exchange appealed to the Paris prosecutor's office. In their opinion, Binance conducted marketing campaigns on Instagram and Telegram before receiving approval for work from the country's authorities.
According to local media, the complaint was filed on December 14 on behalf of 15 investors. They also claim that the exchange advertised the algorithmic UST stablecoin as backed by the US dollar. After the collapse of Terra, they allegedly lost more than €2.4 million.
In a blog post, the French division of Binance noted that it did not conduct marketing campaigns during the period under review. The exchange also stressed that it always warns users about the risks of investing in crypto assets.
In November 2021, the head of Binance, Changpeng Zhao, announced plans to obtain the status of a digital asset service provider in France and to open a regional headquarters. At the same time, the exchange announced a joint initiative with France FinTech to support local blockchain startups in the amount of €100 million.
In May 2022, the company received a license for a service provider in the digital asset market from AMF with the consent of ACPR.