A group of traders from France, the USA, Australia and Ukraine are filing a lawsuit against the Binance platform for failing to provide trading functionality during high load on the exchange.
The case, filed in an international commercial arbitration court, represents the largest investor lawsuit ever brought against a cryptocurrency platform in digital currency markets.
The charge stems from the exchange's May 19 outage, which coincided with a sharp drop in the price of Bitcoin. Futures traders were particularly affected. During times of high market volatility, they were unable to close their positions. By the time service was restored, many had already been liquidated. Traders are confident that if Binance had worked properly, they would have had time to close their positions before liquidation.
More than 700 people were affected by the outage, and lost about $20 million. If their claims are proven in court, Binance will have to compensate for these losses from their own pocket.
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