Binance class action lawsuit. On June 13, 2022, a class action lawsuit, Jeffrey Lockhart v. BAM Trading Services Inc. and Brian Shroder, Case No. 53:22-cv-03461 (N.D. Cal.), was filed against cryptocurrency trading platform Binance US for violating the Securities Act of 1933, as amended (Securities Act), 15 U.S. Code § 77e and 15 U.S. Code § 77l, and the Securities Exchange Act of 1934, as amended (Exchange Act), 17 CFR § 240.3b-16, by facilitating trades in collapsed stablecoin Terra USD without registration with the SEC as an exchange. The plaintiffs seeks damages, compensation for the price paid for the stablecoin, and trading fees. For more information on a related Binance class action lawsuit, see Legal Update, SDNY Dismisses Investor Action Against Cryptocurrency Exchange Binance.

CFTC files complaint against Gemini. On June 2, 2022, the CFTC filed a complaint against crypto exchange Gemini Trust Company, LLC (Gemini) for allegedly making false or misleading statements of material facts, or omitting material facts, to CFTC staff in connection with the evaluation of the self-certification of its bitcoin futures contract offering. CFTC seeks to have Gemini and its staff enjoined from engaging in trading and have the company disgorge profits and pay civil monetary penalties. CFTC notes in the complaint that the bitcoin futures contract was significant because it was to be among the first digital asset futures contracts listed on a US derivatives exchange.