Crypto-Focused Law Firm Hits Binance, BitMEX with 11 Lawsuits in US
- The class-action lawsuit names executives like Block.one CTO Dan Larimer and Binance CEO Changpeng Zhao.

Major cryptocurrency exchanges, including Binance and BitMEX, have been pegged with 11 class action complaints at a federal court in Manhattan.
The collective suit, filed by law firms Roche Cyrulnik Freedman and Selendy & Gay PLLC on behalf of crypto investors, targets 42 defendants operating in many countries, namely Canada, China, Hong Kong, Israel, Japan, Malta, Switzerland, USA, among many others.
The legal action alleges that the defendants violated federal securities laws and mislead investors into buying unregistered assets.
The defendants include crypto issuers and exchanges, including KuCoin, BitMEX, Bprotocol, Status, Block.one, Civic, and Binance. The class-action lawsuit names executives like Block.one CTO Dan Larimer and Binance CEO Changpeng Zhao.
"Not unlike the mortgage crisis that led to the Great Recession, the alleged pattern of misconduct by exchanges and issuers yielded billions in profits for wrongdoers through a basic betrayal of public trust," Philippe Selendy, a partner at the law firm Selendy & Gay, said in a statement on Monday.
The case mirrors the SEC's insistence that the crypto-financial products must follow traditional securities rules and comes as part of a bigger regulatory and legal crackdown in the growing cryptocurrency industry.
According to the allegation, US regulations assume that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term and tokens offered through ICOs are securities. As such, the plaintiffs claim that crypto issuers such as Block.one and Tron, and exchanges like Binance and BitMEX ran afoul of US laws because the vehicle being offered could be considered securities.
As securities, cryptocurrency platforms should follow the same rules as every exchange, including disclosures and registering through the SEC as a national exchange, an alternative trading system, or a broker-dealer.
The problem, the complaint says, was that many platforms refer to themselves as 'exchanges' and have set up their own rules when it comes to listing new cryptocurrencies. This gives the misimpression to investors that they are regulated or meet the regulatory standards while, in fact, the SEC has no say in this process and can't guarantee that those are safe investments.
Regulatory status of cryptos remains murky
One of the law firms leading the litigation, Roche Cyrulnik Freedman, has been involved with two other crypto-related lawsuits against Tether and the self-proclaimed Bitcoin inventor Craig Wright's court case. The firm, which has offices in Miami and New York, focuses on litigation in emerging areas of law, such as cryptocurrency and cannabis. It offers clients flat-fee, success-based billing options.
The regulatory status of cryptocurrency offerings generally, remains somewhat murky. However, the SEC warned that securities law might apply to some virtual tokens depending on their specific characteristics.
Earlier this year, Hester Peirce, an SEC regulator dubbed "CryptoMom," has floated the idea of offering a 'safe harbor' to ICOs so that some crypto tokens are not treated as securities. Peirce proposed a three-year grace period for cryptocurrency startups to tweak their token-based fundraising models in new directions.
Major cryptocurrency exchanges, including Binance and BitMEX, have been pegged with 11 class action complaints at a federal court in Manhattan.
The collective suit, filed by law firms Roche Cyrulnik Freedman and Selendy & Gay PLLC on behalf of crypto investors, targets 42 defendants operating in many countries, namely Canada, China, Hong Kong, Israel, Japan, Malta, Switzerland, USA, among many others.
The legal action alleges that the defendants violated federal securities laws and mislead investors into buying unregistered assets.
The defendants include crypto issuers and exchanges, including KuCoin, BitMEX, Bprotocol, Status, Block.one, Civic, and Binance. The class-action lawsuit names executives like Block.one CTO Dan Larimer and Binance CEO Changpeng Zhao.
"Not unlike the mortgage crisis that led to the Great Recession, the alleged pattern of misconduct by exchanges and issuers yielded billions in profits for wrongdoers through a basic betrayal of public trust," Philippe Selendy, a partner at the law firm Selendy & Gay, said in a statement on Monday.
The case mirrors the SEC's insistence that the crypto-financial products must follow traditional securities rules and comes as part of a bigger regulatory and legal crackdown in the growing cryptocurrency industry.
According to the allegation, US regulations assume that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term and tokens offered through ICOs are securities. As such, the plaintiffs claim that crypto issuers such as Block.one and Tron, and exchanges like Binance and BitMEX ran afoul of US laws because the vehicle being offered could be considered securities.
As securities, cryptocurrency platforms should follow the same rules as every exchange, including disclosures and registering through the SEC as a national exchange, an alternative trading system, or a broker-dealer.
The problem, the complaint says, was that many platforms refer to themselves as 'exchanges' and have set up their own rules when it comes to listing new cryptocurrencies. This gives the misimpression to investors that they are regulated or meet the regulatory standards while, in fact, the SEC has no say in this process and can't guarantee that those are safe investments.
Regulatory status of cryptos remains murky
One of the law firms leading the litigation, Roche Cyrulnik Freedman, has been involved with two other crypto-related lawsuits against Tether and the self-proclaimed Bitcoin inventor Craig Wright's court case. The firm, which has offices in Miami and New York, focuses on litigation in emerging areas of law, such as cryptocurrency and cannabis. It offers clients flat-fee, success-based billing options.
The regulatory status of cryptocurrency offerings generally, remains somewhat murky. However, the SEC warned that securities law might apply to some virtual tokens depending on their specific characteristics.
Earlier this year, Hester Peirce, an SEC regulator dubbed "CryptoMom," has floated the idea of offering a 'safe harbor' to ICOs so that some crypto tokens are not treated as securities. Peirce proposed a three-year grace period for cryptocurrency startups to tweak their token-based fundraising models in new directions.