It keeps getting worse for the exchange.
The company was dealing with a big drop in the price of the digital currency. A 30 minute fix that turned into a much longer lasting headaches was the reason for the temporary pause.
A class-action lawsuit has been filed against the company in the United States District Court for the Northern District of California.
It's not the first sign that the company is in for a rough ride, as evidenced by the suit that alleges that they misled investors about the TerraBlockchain crash.
It is the first US-based court filing related to the Terra fiasco.
Around 40 billion dollars of investor funds were wiped out by terra and its sibling terraUSD. The topic of suicide went crazy on the TERRALUNA subreddit.
TerraUSD is a tether coin that is pegged to the value of the US dollar. Terra's collapse resulted in it dipping below the value of a single US dollar.
According to the law firm, the coin was marketed as being more stable than it really was.
"Binance US recklessly listed and promoted UST as a'safe' stable coin to those who wanted to avoid the volatility of other cryptocurrencies," Kyle said. They should be held accountable.
"These assertions are without merit and we will defend ourselves vigorously," said a statement from the company.
If the suit succeeds, it will set a major precedent when it comes to the liability of cryptocurrencies exchanges. The US government may never regulate these exchanges to protect investors.
The US has been accused of misleading investors in a class-action lawsuit.
The creator of "Stable coin" that crashed to zero says it is creating a new one.
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