Binance Loses Supreme Court Appeal in Class-Action Lawsuit
The U.S. Supreme Court ruled today that a class-action lawsuit against Binance will continue. The lawsuit was filed by former investors who accused the exchange of illegally selling unregistered tokens.
Binance claims that the lawsuit is invalid because the United States has no jurisdiction over the issue. However, the Supreme Court today rejected this argument.
US Supreme Court rejects Binance
Binance, One of the world’s leading cryptocurrency exchangesyes Currently facing several legal actions. In the UK, exchanges face Allegation of unlawful dismissal of employee After reporting inappropriate behavior. However, the class action lawsuit currently involved was filed by U.S. consumers.
It claims Binance failed to warn users of the significant risks of investing in certain low-market-cap coins. according to ReportBinance claims that the accusations are baseless and that since the exchange is not located in the United States, securities laws do not apply. However, the Supreme Court thought otherwise.
“Recent technological innovations have made it easier and more efficient for investors to participate in foreign financial markets. This connectivity and convenience have not only expanded the size of the trading market, but also increased the number of Americans trading forex.” Binance said the petition claims.
Changpeng “CZ” Zhao, Former CEO of Binancea leading proponent of appeals to the Supreme Court. CZ is no longer an official representative of the company. However, he remained invested in these lawsuits; Imprisoned on related charges About a year ago.
In fact, the Supreme Court’s ruling may impact Binance in several ways. U.S. federal regulators have chasing companies Multiple criminal charges were filed, but today’s appeal involves civil matters. Former users who have purchased ELF, EOS, FUN, and ICX, OMGQSP or TRX After 2017 it is qualified Join this class action lawsuit.
Although the U.S. federal government has taken Obvious shift towards cryptocurrencieswhich does not necessarily affect the judiciary. Last month, the Supreme Court also Shareholders allowed to file lawsuit against Nvidia Continuing with a similar plot with Binance.
Now that these shareholders have been approved, the exchange’s chances in this lawsuit don’t look good. Furthermore, given that this is only a civil case, it seems unlikely that incoming President Trump will grant clemency.
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