The US Supreme Court ruled on Monday to deny Binance and its founder Changpeng Zhao’s appeal to dismiss a class action lawsuit that accuses the cryptocurrency exchange of selling unregistered tokens that significantly decreased in value.

This decision allows the lawsuit to proceed, following a ruling from the 2nd U.S. Circuit Court of Appeals that determined U.S. securities laws apply to Binance’s transactions due to the involvement of domestic servers in the sales.

Learn more about the all-new VT News and subscribe today!

Plaintiffs argue that Binance failed to inform investors of the risks associated with these digital tokens.

Despite Binance’s claims of misinterpretation of legal standards and its international operations, the Supreme Court’s refusal to hear the case highlights the increasing scrutiny of cryptocurrency exchanges regarding compliance with U.S. regulations.

The outcome of this legal battle could have broader implications for the cryptocurrency industry and its regulatory landscape.

This case is separate from Binance’s previous legal issues related to anti-money laundering violations.

For more details on this story, plus a full media bias breakdown, check out the all-new VT News today!

Add comment