Frequently Asked Questions

1. Who is Eligible for Compensation From Binance?

Anyone who purchased certain "Restricted Products" from Binance at anytime from 2017 through 2024 including:

Futures
Variable Leveraged Tokens (VLTs) such as BTCUP / BTCDOWN, ETHUP / ETHDOWN etc.
Options
Margin Trading
Dual Investment, Liquidity Farming, Swap Farming, DeFi Staking, BNB Vault and Binance Pool

Please note that if you are from New Zealand, we are in the process of organizing investors for a class action claim in the New Zealand High Court. Click here for more details.

2. Why Are Purchasers Eligible for Compensation?

Binance sold Restricted Products in violation of the securities laws and consumer protection laws in every country where it sold such products. As a result, if you lost money from such products you're eligible to full compensation as provided by such laws. In addition, we believe that Binance operated its exchange in an illegal manner which did not even conform to its own advertising. Binance's actions resulted in significant investor losses including those occuring during the Binance Meltdown that occurred on 19 May 2021.

In addition, we have certain evidence which we believe establishes fraud by Binance and its insiders. So beyond the civil claims our goal is to also ultimately hold Binance and its insiders accountable by ensuring that such evidence is provided to governmental authorities so that they can bring criminal proceedings against all culpable parties.

3. Can I Seek Compensation Directly from Binance Myself?

It has been reported that some investors have received very limited compensation from Binance which is typically only 10% - 30% of the investors' losses. You can always seek to contact Binance directly to seek compensation but you are much more likely to receive full compensation if you join our claim and are represented by experienced legal counsel which has the necessary funding to take on a multi-billion dollar company such as Binance. The legal issues and facts underlying the claims are extremely complex and it is unlikely that it would be worth the cost for an individual claimant to pursue their claims directly unless they're willing to spend several million dollars in legal fees themselves.

4. How Are You Able to Get Compensation for Me?

We pool together lots of claimants from each country and fund the legal fees for those claimants such that it is possible to seek compensation for everyone, even claimants with relatively small claims. By seeking compensation on behalf of large pools of claimants we are in a much stronger position to seek compensation from Binance through legal action, regulatory action, settlement negotiations or some combination thereof. We also receive information from internal Binance whistleblowers and work with local regulatory agencies to ensure that investors' rights are fully enforced.

5. In Which Countries Are You Seeking Compensation from Binance?

We have completed substantial legal work and data analysis to date which we plan to leverage by bringing legal action against Binance in every country where it has illegally sold Restricted Products. Given the large amount of resources required to bring claims against Binance, we are first focusing on countries where there are many users who have experienced the largest aggregate financial losses. If you know of others in your country who have incurred losses from Binance's Restricted Products then please encourage them to submit the Compensation Questionnaire since the more affected users there are for a particular country means will that we are able to move forward with securing compensation for you in that country more quickly.

6. Don't Binance's Terms Require that Claims Be Resolved by Confidential Arbitration in Hong Kong?

For multiple reasons our experienced legal team have determined that Binance's Terms of Service are unenforceable by Binance with respect to its illegal advertising and sale of Binance's Restricted Products. That outcome is driven by several distinct reasons including the fact that mandatory arbitration provisions are unenforceable under applicable consumer protection and arbitration laws. In addition, even in the absence of such laws, courts have held such arbitration provisions are both unconscionable and a violation of public policy.

7. Where Can Users or Investors Send Incriminating Information Regarding Binance?

Binance and its founder have profited significantly by blatently violating the laws in multiple countries across the globe. While we already have significant information establishing Binance's unethical and illegal conduct we are always interested in receiving more. So if you have any incriminating information regarding Binance please send it to us at contact@binancecompensation.com. We are particularly interested in information which further establishes fraudulent conduct by Binance including (i) illegal actions taken by Binance on 19 May 2021 by restricting users in order to priortize its insurance fund, (ii) engaging in excessive rebalancing of its Variable Leverage Tokens (VLTs) to concurrently generate fees and undermine the value of such tokens, and (iii) conflicts of interest and insider trading (including by Sigma Chain which was an entity controlled by Binance's founder with funds which the U.S. SEC has alleged were diverted from Binance). You may submit any information anonymously and, in any event, the source of any information will always be treated as strictly confidential.

8. Are There Any Litigation Funding Opportunities For The Claims?

Yes, we offer funding opportunities both from claimants and any other interested third-parties. To learn more please see our Litigation Funding page.

9. Do You Have a Mailing List To Keep Me Updated on Latest Developments?

Yes, you will be added to our mailing list but sumitting the Compensation Questionnaire. If you have not suffered losses but want to receive updates then please sign-up to our mailing list below:

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Frequently Asked Questions

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