Binance Loses Court Appeal in US Securities Violation Lawsuit

The US Supreme Court has denied Binance and its founder Changpeng Zhao’s appeal to dismiss a class action lawsuit alleging securities violations in the United States. The lawsuit, filed by crypto traders, accuses Binance of inadequate risk disclosure tied to tokens such as Tron and EOS.

The complaint primarily seeks to recoup funds invested in these tokens. Binance and its legal team have refuted the allegations, arguing that the exchange’s operations fall outside the jurisdiction of US securities laws.

Initial Attempt to Dismiss the Case

Binance initially sought to have the case dismissed by the United States Court of Appeals for the Second Circuit. However, the Appeals Court ruled that Binance was liable for the transactions, noting that investors purchased the tokens within the US.

The Supreme Court has upheld this decision, dealing another potential blow to the world’s largest centralized exchange, which has already faced court battles on US soil.

Previous Settlement and Ongoing Cases

In November 2023, Binance agreed to a $4.3 billion settlement with the Department of Justice over federal anti-money laundering violations. CZ resigned as CEO and spent four months in prison as part of the deal. The DOJ case was unrelated to the class action lawsuit filed by investors.

CZ’s company is also embroiled in a securities court case with the US Securities and Exchange Commission.

For more updates on cryptocurrency news and market trends, visit Global Crypto News.

“Stay informed about the latest developments in the crypto space, including regulatory updates and market trends.”

Some key takeaways from this case include:

  • Ensure you understand the regulatory environment before investing in cryptocurrencies.
  • Always conduct thorough research on the tokens and exchanges you invest in.
  • Stay up-to-date with the latest news and developments in the crypto space.
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