A federal judge on Thursday rejected a request by cryptocurrency exchange Binance (CRYPTO: BNB) for arbitration in a case involving customer claims over losses from unregistered tokens.
Customers Can Pursue Claims, Rules Judge
U.S. District Judge Andrew Carter of the Southern District of New York ruled that Binance failed to adequately inform its customers about changes to its terms of usage, reported Reuters. These changes included an arbitration requirement and a class-action waiver.
Carter deemed the alleged class-action waiver in Binance’s 2019 terms of use “ambiguous and unenforceable.”
A Binance spokesperson told Benzinga that the company would “vigorously defend the limited claims that remain in this meritless case.”
Notably, the plaintiffs agreed to drop all claims that arose after Feb. 20, 2019.
The lawsuit, originally filed in 2021 and revived by appeals in 2024 after a 2022 dismissal, accuses Binance and founder Changpeng Zhao of violating securities laws by selling high-risk tokens without adequate warnings.
Price Action: At the time of writing, BNB was exchanging hands at $624.71, down 0.78% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Shutterstock
Recent Comments