TerraUSD Meltdown Spurs Investor Lawsuit Against Binance.US (1)

Binance.US was sued by an investor in TerraUSD who claims the cryptocurrency exchange flouted federal regulations, with “disastrous consequences” for its customers when the stablecoin crashed last month.

Jeffrey Lockhart filed the lawsuit on Monday in federal court in San Francisco against BAM Trading Services Inc., which does business as Binance.US, alleging the exchange failed to disclose that TerraUSD is a security and seeking to represent other investors.

“Investors who purchased UST on Binance US were wiped out, learning quickly that, contrary to Binance’s U.S. advertisements, UST was not ‘safe,’ ‘stable,’ or ‘fiat-backed,’” Lockhart said in the suit, adding ...