Liti Capital, a Swiss lawsuit financing firm, has reportedly agreed to provide minimum funding of $5 million for a dispute against Binance's consumers and the cryptocurrency exchange.
According to CNBC, hundreds of cryptocurrency traders are preparing to file lawsuits to demand restitution for cash losses due to a severe downtime on Binance.
According to the article, the case will be handled by the New York-based law firm White & Case, which will defend the traders. “In one way or another, this case will go down in history as a watershed moment.
“We are going to find out what restrictions if any, these massive organizations have on what they can and cannot do,” Liti's executive chair, David Kay, told the Financial Times.
Ahmed, a 33-year-old full-time crypto trader, claimed to have lost about $6 million during the downtime on May 19, according to one of the testimonials gathered by CNBC.
"This defeat was unjust. This was beyond my control,” the trader explained, blaming Binance's customer service.
He further stated that the interruption lasted around one hour, during which he was unable to leave his position.
In reality, both Bitcoin (BTC) and Ethereum (ETH) fell precipitously on that day. On such a day, the crypto market lost $1 trillion in value.
Binance stated that it could not comment on pending legal issues. The claimants' next hurdle will be Binance's lack of a headquarters, as its CEO, Changpeng "CZ" Zhao, previously acknowledged that the company did not have one.
The next court procedures, on the other hand, are scheduled to take place in Hong Kong. “Binance has stated that they have jurisdiction exclusively in a Hong Kong international arbitration court.
Liti's executive chair stated, "This will be the largest consumer international arbitration in history."