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MainNewsUS Court Rev...

US Court Revives 2022 Lawsuit Accusing Binance of Selling Unregistered Securities That Lost Their Value: Report


Mar, 10, 2024
2 min read
by The Daily Hodl

A federal appeals court is reportedly overturning the dismissal of a lawsuit accusing crypto exchange Binance of violating US securities laws by selling unregistered tokens.

In March 2022, District Judge Andrew Carter threw out a class action lawsuit brought by crypto investors who used Binance to purchase tokens that eventually witnessed a massive price decline.

The crypto investors started to accumulate the tokens through Binance in 2017 including aelf (ELF), EOS (EOS), FUNToken (FUN), ICON (ICX), OMG Network (OMG), Quantstamp (QSP), LEND, Kyber Network Crystal (KNC) and Tron (TRX). The plaintiffs wanted to recoup their investments, saying that the world’s largest crypto exchange failed to warn them about the significant risks of buying the crypto assets.

But Judge Carter decided in favor of Binance, saying that domestic securities laws were not applicable because Binance is not a domestic exchange. He also said the investors did not act in a timely manner as they filed the lawsuit about a year after making the purchase. 

Reuters now reports that the 2nd US Circuit Court of Appeals in Manhattan is reviving the lawsuit.  

In a 3-0 decision, the appellate court says that domestic securities laws were applicable in the case because the token purchases had become irreversible in the US after making payment. The court also finds that Binance relies on Amazon’s domestic computer servers to host its platform.

Circuit Judge Alison Nathan says Binance “notoriously denies the applicability of any other country’s securities regulation regime.”

The appellate court adds that investors may still seek to recoup their capital if they invested a year before they filed the lawsuit.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post US Court Revives 2022 Lawsuit Accusing Binance of Selling Unregistered Securities That Lost Their Value: Report appeared first on The Daily Hodl.

Read the article at The Daily Hodl

Read More

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MainNewsUS Court Rev...

US Court Revives 2022 Lawsuit Accusing Binance of Selling Unregistered Securities That Lost Their Value: Report


Mar, 10, 2024
2 min read
by The Daily Hodl

A federal appeals court is reportedly overturning the dismissal of a lawsuit accusing crypto exchange Binance of violating US securities laws by selling unregistered tokens.

In March 2022, District Judge Andrew Carter threw out a class action lawsuit brought by crypto investors who used Binance to purchase tokens that eventually witnessed a massive price decline.

The crypto investors started to accumulate the tokens through Binance in 2017 including aelf (ELF), EOS (EOS), FUNToken (FUN), ICON (ICX), OMG Network (OMG), Quantstamp (QSP), LEND, Kyber Network Crystal (KNC) and Tron (TRX). The plaintiffs wanted to recoup their investments, saying that the world’s largest crypto exchange failed to warn them about the significant risks of buying the crypto assets.

But Judge Carter decided in favor of Binance, saying that domestic securities laws were not applicable because Binance is not a domestic exchange. He also said the investors did not act in a timely manner as they filed the lawsuit about a year after making the purchase. 

Reuters now reports that the 2nd US Circuit Court of Appeals in Manhattan is reviving the lawsuit.  

In a 3-0 decision, the appellate court says that domestic securities laws were applicable in the case because the token purchases had become irreversible in the US after making payment. The court also finds that Binance relies on Amazon’s domestic computer servers to host its platform.

Circuit Judge Alison Nathan says Binance “notoriously denies the applicability of any other country’s securities regulation regime.”

The appellate court adds that investors may still seek to recoup their capital if they invested a year before they filed the lawsuit.

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post US Court Revives 2022 Lawsuit Accusing Binance of Selling Unregistered Securities That Lost Their Value: Report appeared first on The Daily Hodl.

Read the article at The Daily Hodl

Read More

Binance Founder Changpeng Zhao Partners With Kyrgyzstan To Help Develop a National Crypto Ecosystem

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The country of Kyrgyzstan and the founder of the world’s leading crypto exchange just...
Apr, 04, 2025
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Malta Slaps OKX Crypto Exchange With $1,155,000 Fine Over Anti-Money-Laundering Violations

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The crypto exchange OKX is dealing with more regulatory issues. Malta’s Financial Int...
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