A US appeals court has overturned a ruling that dismissed an investor-led class action lawsuit against cryptocurrency exchange Binance.
according to filing On March 8, in a hearing with the U.S. Court of Appeals for the Second Circuit, a district court ruling rejecting investor claims regarding transparency issues in Binance’s alleged sale of securities was overturned in favor of investors. .
“We find that each of the grounds on which the district court dismissed Plaintiffs’ claims on appeal erred,” the filing states.
Chase Williams filed a lawsuit in April 2020 on behalf of investors in similar situations, alleging that Binance entered into securities sales agreements despite not being registered as a stock exchange or broker-dealer. filed a lawsuit.
Additionally, investors are seeking termination of the contract with Binance.
“Plaintiffs allege that this occurred when Binance engaged in illegal promotions, and that Binance violated Section 77L(a)(1) of the Securities Act of 1933, 15 U.S.C. It is seeking damages stemming from allegations that it sold billions of dollars worth of crypto assets called “tokens” that were not registered as securities. ”
The district court dismissed the lawsuit on the grounds that the investors’ claims were untimely based on the relevant statute of limitations.
However, the appellate court agreed with the plaintiffs’ argument that Binance was subject to domestic securities laws and that the initial filing was timely.
This comes as Binance continues to grapple with ongoing legal challenges from US securities regulators.
Related: Binance.US claims bank has ‘radioactive material’, SEC deals ‘nearly fatal blow’
On March 6, Cointelegraph reported that the U.S. Securities and Exchange Commission (SEC) is “unable or unwilling” to respond to requests for information regarding the custody of customer assets.
In June 2023, the SEC reported that Binance, Binance.US, and its founder and former CEO Chao Changpeng “CZ” Chao, had sold unregistered securities to a separate company controlled by Chao. filed suit for selling mixed customer assets.
In November 2023, Binance admitted to violating US money laundering and terrorist financing laws and reached a $4.3 billion settlement with the US Department of Justice.
As part of the settlement, Mr. Zhao will plead guilty to money laundering charges and will face a criminal sentencing hearing in April.
magazine: Will it be foolish to measure blockchain transactions per second (TPS) in 2024? The big question
