Binance France and its parent company, Binance Holdings Limited, are being sued by 15 investors in France over allegations of misleading commercial practices and fraudulent concealment.

The plaintiffs claim that Binance violated French laws by advertising and distributing crypto services before being registered with the country’s authorities.

The complaint includes screenshots of Binance’s social media activity prior to its registration, including a Telegram channel called “Binance French,” and the plaintiffs claim to have lost over €2.4 million following the collapse of the TerraUSD stablecoin, which Binance had advertised as being backed by the US dollar.

In a blog post, Binance France denied conducting any promotional communications in France during the relevant period and stated that Telegram groups are global community forums that users can voluntarily create and join.

Binance also noted that it always includes market risk warnings for crypto products and has strengthened its descriptions.