A class-action lawsuit led by investors against cryptocurrency exchange Binance has been revived by a United States appeals court. The court overturned a ruling by the district court that dismissed the investors’ claims of transparency issues in Binance’s sale of alleged securities. The appeals court deemed the district court’s dismissal of the claims as erroneous. The lawsuit, filed by Chase Williams on behalf of investors, alleges that Binance sold securities without being registered as a securities exchange or broker-dealer. The investors are seeking to cancel the contracts they entered into with Binance. The appeals court agrees with the plaintiffs’ claims that Binance is subject to domestic securities laws and that their initial filing was timely. Binance is currently facing ongoing legal challenges from the U.S. securities regulator, the Securities and Exchange Commission (SEC). The SEC has sued Binance, Binance.US, and its founder and former CEO Changpeng Zhao, alleging the sale of unregistered securities and the mixing of customer assets in a separate firm controlled by Zhao. In a separate settlement, Binance agreed to pay $4.3 billion for violating U.S. money laundering and terrorism financing laws, and Zhao pleaded guilty to money laundering charges.
Appeals court overturns dismissal of Binance class-action lawsuit