A recent development has seen a federal appeals court reinstating a lawsuit against the popular cryptocurrency exchange, Binance. Investors have accused Binance of violating U.S. securities laws by selling unregistered tokens, resulting in significant losses for investors.

According to a report by Reuters on March 8, the lawsuit has been renewed, allowing investors to bring claims related to purchases made in the year leading up to the lawsuit. Tokens such as aelf (ELF), EOS (EOS), FUNToken (FUN), Icon (ICX), OMG Network (OMG), Quantstamp (QSP), and Tron (TRX) purchased through Binance in 2017 experienced substantial losses, leading investors to seek compensation.

“They claimed that Binance failed to warn them about the tokens’ ‘significant risks’ and sought to recoup what they paid.”

Despite these claims, representatives of Binance argue that U.S. securities laws do not apply to the exchange as it is located outside the country. This legal battle is not the first time Binance has faced trouble in the United States. In a separate case, Binance was found guilty of violating anti-money laundering laws and was ordered to pay $4.3 billion in fines.

Following this ruling, the founder and CEO of Binance, Changpeng Zhao, admitted guilt, leading to a change in leadership at the exchange. Richard Teng, who previously oversaw regional markets outside the United States, has taken over as the new head of Binance.

For more updates and news on the cryptocurrency industry, continue exploring Global Crypto News.

Post Views: 3