Binance News: In mid-May, when cryptocurrencies suddenly began to fall one after another, Binance suffered a freeze, leaving its users in the middle of a crypto apocalypse. The world’s largest cryptocurrency exchange was frozen for over an hour, costing thousands of traders’ fortunes.
700 people face Binance
Afterwards, many traders wanted to file complaints against the exchange, but Binance’s lack of headquarters made it difficult for them to reach the right authorities.
More than 700 traders are suing Binance with the help of attorney Aija Lejniece. Binance has declared itself a “truly decentralized” exchange platform after several countries faced regulatory action, after setting up an office in their region without proper registration.
Anand Singhal, one of the traders on his platform, stated that he had a very bad time when all his savings over $24,000 from trading disappeared on May 19, when Binance went out of business.
Everyone was hurt by the losses
As a result, some were left with little chance to recoup their losses. Many traders opened leveraged positions from Binance to BTC, allowing them to deposit more than they had in their accounts. Thanks to leveraged transactions, Binance counted $125 worth of crypto for every dollar the trader had in their account.
After losing this bet, the entire asset blew up, liquidated by the exchange platform. This is not unlike what would have happened to many in Las Vegas, but Anand Singhal had not entered cryptocurrencies for fun or out of greed. It was a calculated trade, but Binance’s system failure caused him and many others to lose fortunes.