Three crypto investors have filed a class action lawsuit against Binance and its former CEO Changpeng Zhao (CZ).
The lawsuit, which has been filed in the US District Court for the Western District of Washington, alleges that Binance's failure to prevent money laundering made it impossible for investors to recover their stolen crypto assets.
According to the lawsuit filed on August 16, the stolen cryptocurrencies were sent to Binance by the thieves.
The plaintiffs argue that a key advantage of cryptocurrencies is the “permanent record of transactions” on the blockchain, which allows authorities to trace stolen funds. However, they claim that Binance facilitated money laundering by hiding this record and making the stolen cryptocurrencies untraceable.