Binance is facing an unconventional new legal claim over May 19th outage
A group of disgruntled investors is pursuing a formal claim against the cryptocurrency platform Binance for allegedly causing millions in damages through an unanticipated outage earlier this year. Filed in an international business arbitration court, the case represents the largest investor action ever brought against a cryptocurrency platform, and a major test of the rights of investors speculating in digital currency markets.
The case stems from a widespread service outage on May 19th, which coincided with a massive drop in the price of Bitcoin. Binance wasn’t the only platform affected, as a mass selloff clogged blockchain transactions and overwhelmed reserves, but the complex financial products offered by the platform made the damage…