This is a petition directed to the U.S. Securities and Exchange Commission (SEC) regarding an accusation against Binance Exchange for corporate negligence.

 

This petition demands for the SEC to launch an investigation against Binance Exchange for breach of consumer protection policies and engagement and promotion of false advertisements concerning the use of its Binance Leveraged Tokens (BLV tokens), as its pertains to Consumer Protection regulations and policies in the United States, Canada, European Union, United Kingdom, and the British Commonwealth States.

 

The artificial leveraging of market tokens by the exchange (broker) which, conditions the consumer against the favour of the market conditions (incorrect leverage) represents a manipulation of market conditions (false adjustment). Manipulation of market conditions are a serious crime - illegal in all jurisdictions in the United States, Canada, EU, and in several other  jurisdictions around the world.

 

"The incorrect leveraging of the Binance Leverage Tokens by Binance Exchange between May 18th-20th, 2021 is a representation of a false-adjustment tactic and is a form of market manipulation."

 

 

During the Black Wednesday/Thursday market crash (May 19-20th, 2021), Binance failed to accommodate and insure its customers from the defective capacities of its Leveraged Tokens (BLV tokens). All BLV-down tokens failed to move in the correct direction of the market resulting in damages to customers ranging from ten-thousand to over-one-hundred-thousand dollars.

 

Binance states on its consumer agreement policy, that during times of high market volatility, the leverage on its BLV tokens may be adjusted in order to meet the appropriate conditions and demands of the market. Between May 19th- 20th, 2021, all BLV tokens, at some point in time, exceeded the leverage target range of 1.5x to 4x.

 

In order to adjust for the changing and volatile market conditions, Binance underwent a Maintenance Period (May 19th to May 21th – depending on the affected token) to create a ten-thousand-to-one reverse split in order to maintain the appropriate leverage target.

 

However, in lite of this, Binance deterred the consumer focus away from the losses and damages resulting from the defective capabilities of its BLV tokens. Binance used the maintenance period as a political-counter to deter the consequences of its defective tokens. The maintenance period proved to be insufficient to re-balancing the leverage and accommodate its customers who held BLV tokens between May 19th-20th and amounted to severe losses when the leverage target exceeded the 1.5x to 4.0x target range.

 

The Binance Exchange is responsible to the damages incurred to its customers on the usage of its Binance Leveraged Tokens which, failed to function appropriately between May 19th-20th, 2021.

Ownership of tokens within a recommended range of 6 hours to 24 hours (as recommended by the Binance Policy on its BLV tokens) still resulted in severe losses for its customers.

 

Sincerely, 

 

Affected Binance Customers.

 

 

Date Released: 

May 21st, 2021 – 16:00 EST

More information concerning the conditions and progress of this petition and related legal conditions may be found in the Advisory Notice posted here. 

To access the Official Reddit Lawsuit page please click here. 

To join the Official Discord Channel for defective Binance products and services please click here.