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Coinpaprika 2025-01-14 08:24:35

Supreme Court Rejects Binance Appeal, Lawsuit Proceeds

The US Supreme Court has ruled that a class action lawsuit against Binance will proceed, rejecting the exchange’s argument that the case lacks US jurisdiction. The lawsuit, filed by former investors, accuses Binance of illegally selling unregistered tokens and failing to disclose the risks of investing in certain low-cap cryptocurrencies. Binance argued that US securities laws do not apply since the company is not based in the United States. However, the Supreme Court dismissed this defense, emphasizing the increasing ease of American investors participating in foreign markets. Binance stated, “Technological advancements have allowed investors greater access to global financial markets, increasing the size of these markets and the number of Americans involved.” The lawsuit includes eligible investors who purchased specific tokens like EOS, TRX, and OMG after 2017, expanding its scope. The ruling may set a significant precedent for other ongoing legal battles against Binance, which is already facing scrutiny from US federal regulators and allegations of criminal activity. Changpeng “CZ” Zhao, Binance’s former CEO, had been a key supporter of the Supreme Court appeal. Although CZ no longer holds an official position at Binance, he remains tied to the case and has a vested interest in its outcome. He was detained on related charges nearly a year ago, adding further complexity to the company’s legal challenges. The lawsuit represents a civil matter and contrasts with the criminal cases Binance faces. Legal experts suggest this ruling could weaken Binance’s position in other disputes, as it demonstrates that US courts can hold foreign crypto exchanges accountable for their activities impacting American investors. This case parallels a recent Supreme Court decision to allow a shareholder lawsuit against Nvidia, indicating the judiciary’s willingness to entertain cases involving complex financial and technological issues. With this decision, Binance’s chances of a favorable outcome in this lawsuit seem slim. Observers note that clemency from the next administration, including President Trump , is unlikely, as the case involves civil rather than criminal matters. As the lawsuit advances, it adds to the mounting legal pressures on Binance, further challenging its operations and reputation in the global crypto market.

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