Crypto Lawyer to Bring Class Action Lawsuit Against Binance’s CZ

Moskowitz Law Firm has processed various class-action lawsuits for cryptocurrency investors. The firm is now working on a new petition for deposing former executive of Binance namely CZ. Adam Moskowitx, the lead attorney on the case, has filed the deposition request at the court against former Binance CEO.

It is important to note that a deposition statement is part of the discovery process for civil suits that requires a witness to answer questions of the opposing counsel. The deposition request was filed on 8th December at the District Court for the Southern District of Florida.

Moskowitz retained that the testimony of CZ will shed further light on the claims and defenses that are relevant to the case. The deposition is part of the discovery process for the ongoing $1 billion lawsuit against CZ, Binance and a hoard of crypto influencers. The court issued a stay order on the lawsuit in August.

The legal firm and the lead lawyer have represented various parties against high-profile crypto businesses and their subsidiaries. He also fought the case for various affected investors who suffered from massive losses following the demise of FTX exchange.

Head Lawyer Explains the Deposition Process Against CZ

Moskowitz stated that CZ will send a deposition notice on account of his status as a defendant in the case. He noted that the lawyers are awaiting the completion of discovery process to make a decision regarding the demand from Binance lawyers for litigating the class action lawsuit at the AAA arbitration association.

He further noted that regardless of the case direction, testimony from CZ will play a crucial role in shaping the outcome of the lawsuit. He further noted that the deposition order was filed following court ordering CZ to remain in the country before his sentencing hearing in February next year.

In November, regulators signed a $4.3 billion settlement with Binance conditioned with CZ stepping down from his position as CEO and pleading guilty to federal charges.  On the other hand, the former executive is looking at a probable jail time of zero to 60 years. As per Moskowitz, the lawyers from the firm were not part of the settlement process between CZ and US regulators.

He noted that in case he does not get any prison time, he will fly to UAE. However, if he does get jail time, it won’t be easy to arrange a deposition from inside of prison. The lawyer further stated that based on guilty plea statement of CZ, some of the plaintiff claims against him may have backing in the court.  

Binance Former CEO to Face Civil Lawsuit Following Discovery Process

In addition to federal charges and a hefty financial penalty, CZ is also facing civil lawsuit. As per Moskowitz, the former executive’s guilty plea indicates lack of risk management implementation during his tenure. Therefore, the statement in the federal lawsuit can serve as basis for proving allegation against CZ in the civil suit.

The lawsuit reports that Binance was dealing in unregistered securities and Securities and Exchange Commission of United States was not part of the $4.3 billion settlement deal. The lawyer stated that SEC will continue litigation process against CZ and Binance.

The federal agency has also continued to try BNB token as unregistered security offering. Therefore, the $4 billion market cap of the trading platform native coin can drop to zero within minutes. At this point, there is no clarity if the judges will pass the deposition motion brought by Moskowitz law firm. At present, CZ is not the working CEO of Binance and Binance.US has halted operations in various states.