Court allows Binance class action lawsuit to proceed.
As per Reuters, the US Supreme Court has decided that a class action lawsuit against Binance will move forward. This lawsuit is brought by former investors who allege that Binance sold unregistered tokens illegally. Binance argued that the US lacked jurisdiction over the case, but the Supreme Court dismissed this claim.
Binance is currently involved in multiple legal issues. In the UK, it faces accusations of wrongfully terminating an employee who reported misconduct. However, the class action lawsuit in the US focuses on claims that the firm did not adequately inform users about the risks of investing in certain low-cap tokens. Binance maintains that these claims are baseless and insists that US securities laws do not apply to them since they are not based in the US.
The Supreme Court noted that advancements in technology have allowed US investors to engage more easily with foreign markets, which has increased the number of Americans trading on exchanges like Binance.
Changpeng “CZ” Zhao, the former CEO of Binance, supported the appeal to the Supreme Court, although he is no longer an official representative of the company due to his own legal troubles.
The ruling could have significant implications for Binance, as US federal regulators have already pursued criminal charges against the company. This class action lawsuit is a civil matter, and former users who purchased specific tokens after 2017 can join the suit.
The Supreme Court’s decision to allow this lawsuit to proceed mirrors a recent case involving Nvidia, suggesting that Binance may face challenges ahead. Given the nature of the case, it seems unlikely that any leniency will come from the current political climate.
