The high volatility in the crypto market between February and May saw many exchanges experience costly system failures. One of the exchanges that was most affected is Binance.
The technical issues ended up costing clients millions of dollars in losses. Now Australian investors are considering a class action suit against the exchange. One of the Australian investors pushing for a class action suit is Francis Kim.
Kim, a Melbourne based crypto trader, lost $180,000 after a system outage on May 19th. However, Binance only gave him only $60k as compensation. The dissatisfied trader went on a search for other traders facing similar issues and found 10.
Collectively, the 10 Australian investors lost USD 1.2 million. Their current numbers are not enough to file a class action suit, so they are now on an international search for other aggrieved investors.
The biggest challenge for them is that there are no laws in Australia governing cryptocurrencies. However, the process of having the market regulated is ongoing. The Australian senate has been receiving views from the public on the best way to go about regulating the market.
However, as things stand, there are no protections for investors who get involved in crypto within Australia. According to a local Australian press, the Australian Securities and Investment Commission has stated that investors do not enjoy any protections caused by such technical issues.
This statement dampens the investors’ hopes of seeking a class action suit against Binance or other major exchanges.