{"id":7429,"date":"2025-01-13T18:01:31","date_gmt":"2025-01-13T18:01:31","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=7429"},"modified":"2025-01-13T18:01:31","modified_gmt":"2025-01-13T18:01:31","slug":"us-supreme-court-rejects-binances-appeal-in-revived-crypto-investors-lawsuit","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=7429","title":{"rendered":"US Supreme Court Rejects Binance\u2019s Appeal In Revived Crypto Investors Lawsuit"},"content":{"rendered":"
\n

The US Supreme Court has denied Binance\u2019s request to review the decision that revived a 2020 class action lawsuit accusing the exchange of violating security laws in the country and failing to protect investors.<\/p>\n

US Supreme Court Rejects Binance Appeal<\/h2>\n

On Monday, the US Supreme Court rejected<\/a> Binance and its founder Changpeng Zhao\u2019s appeal to avoid a class action lawsuit that accuses the crypto exchange of violating security laws by illegally selling unregistered tokens.<\/p>\n

According to the reports, the exchange sought to review the 2nd US Circuit Court of Appeals in Manhattan\u2019s decision to revive the 2020 lawsuit and let the proposed class action proceed. Binance and Zhao argued that US securities laws should not govern the exchange as it was outside the country.<\/p>\n

The appeal cited Morrison v National Australia Bank, a 2010 Supreme Court decision<\/a> that limited the extraterritorial reach of those laws. It claimed the 2nd Circuit misapplied the Morrison decision by \u201callowing liability at multiple stages of securities transactions and in multiple countries.\u201d<\/p>\n

\"Binance\"<\/p>\n

The report stated that Binance considers this decision \u201cessentially revived a standard that the Supreme Court has rejected in which domestic securities laws could apply if the conduct underlying a transaction took place or the transaction had effects in the United States.\u201d<\/p>\n

Moreover, the exchange alleged that its appeal allows the Court to \u201caddress a question of global significance for financial markets: whether (and if so, when) U.S. securities laws extend to foreign trading platforms such as Binance.com.\u201d<\/p>\n

Nonetheless, the Justices declined to hear the exchange\u2019s bid, reaffirming the lower court\u2019s decision to allow the lawsuit to continue.<\/p>\n

2020 Class Action To Proceed<\/h2>\n

In 2020, a group of crypto investors filed a class action lawsuit<\/a> against Binance, arguing that the exchange \u201cwrongfully engaged in millions of transactions\u201d and failed to warn about the \u201csignificant risks\u201d of some of its tokens.<\/p>\n

The lawsuit claimed that Binance had violated securities law by selling unregistered tokens and \u201cfailing to register as an exchange or broker-dealer.\u201d The investor bought ELF, EOS, FUN, ICX, OMG, QSP, and TRX through the crypto exchange and reportedly faced significant losses from their investment.<\/p>\n

In March 2022, US District Judge Andrew Carter dismissed the lawsuit as the investors had \u201csued too late.\u201d The judge also argued that domestic security laws did not apply to Binance since it was not a domestic exchange, regardless of whether it used \u201cAmazon computer servers and Ethereum blockchain computers in the United States.\u201d<\/p>\n

However, the lawsuit was revived<\/a> in March 2024 after the 2nd US Circuit Court of Appeals in Manhattan, in a 3-0 decision, said the investors plausibly alleged that domestic securities laws applied.<\/p>\n

\u201cThe 2nd U.S. Circuit Court of Appeals in Manhattan ruled that domestic securities laws could apply despite Binance not being a U.S. company because token purchases became irrevocable in the United States once investors paid for them,\u201d Reuters reported.<\/p>\n

Judge Alison Nathan argued that Binance\u2019s use of domestic Amazon<\/a> servers to host its platform supported the decision, as the exchange \u201cnotoriously denies the applicability of any other country\u2019s securities regulation regime.\u201d<\/p>\n

\"Binance,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The US Supreme Court has denied Binance\u2019s request to review the decision that revived a 2020 class action lawsuit accusing the exchange of violating security laws in the country and failing to protect investors. US Supreme Court Rejects Binance Appeal On Monday, the US Supreme Court rejected Binance and its founder Changpeng Zhao\u2019s appeal to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-7429","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/7429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7429"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/7429\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}