Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
05/13/2022
Initial Lawsuit
06/13/2022
Lawsuit Progression
08/16/2022
An investor filed this class action lawsuit on behalf of all persons or entities who transacted in TerraUSD (UST) on Binance U.S. “between April 13, 2022, and the present.”
Summary
(a) Binance U.S. falsely advertised UST as “safe”;
(b) Binance U.S also falsely advertised UST as “fiat-backed”;
(c) Binance U.S. failed to disclose that UST is in fact a security, and that it is selling these securities, even though (i) there is no registration statement in effect for them, and (ii) Binance U.S. itself has refused to register with the U.S. Securities and Exchange Commission (“SEC”) either as a securities exchange or as a broker-dealer.
Excerpt
“Binance U.S.’s failure to comply with the securities laws critically enables bad actors like Terraform Labs to harm investors. In fact, Binance U.S.’s business model is premised on enabling these bad actors: Binance U.S. profits from every trade, and therefore has a stark incentive to sell cryptoassets irrespective of their compliance with the securities laws. From Binance U.S.’s perspective, the less disclosure, the better, as more disclosure about the riskiness of crypto-assets will predictably lead investors to trade certain assets less and reduce transaction volume and Binance U.S.’s astonishing profits.”
See complaint for detailed allegations.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.