Binance suffered from a major mishap last May 19 when users were locked out of their accounts. Now, traders are struggling to sue Binance because of jurisdiction problems since the exchange site has no official headquarters or office.
According to reports by the Wall Street Journal, an unnamed trader said, ‘Unlike a more traditional investment platform, Binance is largely unregulated and has no headquarters, making it difficult, the traders say, to figure out whom to petition.’
A group of over 700 Binance users from France, Italy and other parts of Europe were involved in pursuing legal action against Binance. The traders are working with lawyers and help desks. To get their message across, they have also sent letters to Binance addresses around the world.
Last May 19, hundreds of Binance users all over the world were locked out of their accounts and unable to trade digital assets for over an hour. Within that time frame, funds disappeared and left users with drained accounts. Some people reportedly lost $50,000 and even up to $3 million on an individual basis.
Since then, affected traders have been trying to get their funds back but to no avail. On the other hand, Binance has attested that they have done everything they can to fix the problem. This included taking ‘immediate steps to engage with users affected by the outage’ along with providing compensation.
According to reports by The Verge, Binance tried to offer said compensation by giving the affected traders free 3-month access to the Binance VIP platform so users can move on from the entire altercation and return to regular trading on the platform.
Binance Executive Aaron Gong spoke out on Twitter last May, apologizing for the mishap and saying that Binance representatives would reach out to affected users and help them fix the problem. These tweets were later deleted and no action has been taken since.
The mishap has prompted users to stray away from Binance and lodge more complaints as the months pass and no new developments have occurred.
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