#Binance and Former CEO CZ Faces New Lawsuit, But Why?

In a recent development, three crypto investors filed a class-action lawsuit against Binance and its former CEO, Changpeng Zhao (CZ). As per sources, the legal challenge is for alleged money laundering and failure to prevent asset theft.

The suit, filed on August 16th, claims stolen crypto was laundered via Binance, making it untraceable. The lawsuit also claims that Binance is enabling illicit activities by neglecting Anti Money Laundering protocols.

Meanwhile, despite these allegations, Binance is committed towards a strong track record in fraud prevention. Since January 2024, the exchange has blocked $2.4B in potential losses due to scams and fraud, protecting over 1.2 million users globally.