HomeBinanceBinance is going to...

Binance is going to court in the US again because of accusations about crypto securities.

  • The Second Circuit Court of Appeals has revived a lawsuit against cryptocurrency exchange Binance, offering investors a new chance to pursue their claims.
  • The lawsuit, initiated in April 2020, alleges that investors purchased securities from Binance, including various ERC-20 tokens.
  • A lower court’s dismissal, based on the statute of limitations and Binance’s lack of substantial U.S. ties, was overturned by the appellate court.

The Second Circuit Court of Appeals has given a group of investors a new opportunity to pursue their lawsuit against the cryptocurrency exchange Binance. The court reversed a previous decision by a lower court, which had dismissed the case. This lawsuit, initiated in April 2020 by crypto investors, centers on allegations that they purchased securities from Binance, including various ERC-20 tokens.

The appellate court’s decision challenges the earlier ruling by Judge Andrew Carter of the Southern District of New York. Judge Carter dismissed the lawsuit on the grounds that it had been filed after the statute of limitations had expired. He also stated that Binance did not qualify as a domestic exchange under U.S. federal securities laws due to its lack of substantial ties within the United States.

Binance lawsuit gets a second chance in court

The appeals court found that the plaintiffs had “plausibly alleged” that the transactions in question were completed on servers located in the U.S. It also highlighted that the plaintiffs accessed Binance’s services from within the country. This finding addresses the critical issue of whether transactions involving digital assets, purported to be securities, can be considered domestic transactions subject to U.S. federal securities laws.

The court also revisited the issue of the statute of limitations. It clarified that the clock for the statute of limitations started when the plaintiffs purchased the tokens, which was within a year of filing the lawsuit. This aspect of the ruling emphasizes the timing of legal actions in the context of digital asset transactions.

Next steps for the lawsuit

The decision to revive the lawsuit does not conclude that the tokens involved are securities. Instead, it allows the case to return to the district court, where both parties can present arguments regarding the nature of these digital assets. This stage will be crucial in determining the applicability of federal securities laws to the tokens in question.

Binance, which has the option to appeal the decision to the U.S. Supreme Court, has not yet responded to requests for comment. The outcome of any potential appeal or the subsequent proceedings at the district court level, will be closely watched. It could have far-reaching implications for the regulatory landscape of digital assets in the United States.

The lawsuit’s progression underscores the evolving nature of legal and regulatory challenges in the cryptocurrency space. It also highlights the judiciary’s role in clarifying the application of existing laws to new forms of digital transactions. As the case moves forward, it will likely contribute to the ongoing dialogue about the regulation of cryptocurrencies and digital assets.

Warning: The information provided is not trading advice.

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

BINANCE RECONSIDERS RULES FOR TOKEN LAUNCH, INSISTS ON QUALITY FOR NEW LISTINGS

Binance has noticed the low-float token trend and will limit...

Bullish Forecast for Bitcoin (BTC) from Analysts: “Last Opportunities Before Parabolic Rally!”

While Bitcoin has experienced a significant increase recently, surpassing $67,000, analysts...

KOI Announces Strategic Partnership with B² Network

KOI, Kingdom of Inscription, a unique game economy powered by AI...

Which Altcoins Will Binance List? Here is the New Strategy!

While Binance, the world's largest cryptocurrency exchange, continues its altcoin listings...

- A word from our sponsors -

Read Now

BINANCE RECONSIDERS RULES FOR TOKEN LAUNCH, INSISTS ON QUALITY FOR NEW LISTINGS

Binance has noticed the low-float token trend and will limit listings based on a new rule set. Venture-backed projects are entering the market, often with a low float. VC funding returned in Q1, creating a new challenge for centralized exchanges. Binance issued a new list of rules for...

Bullish Forecast for Bitcoin (BTC) from Analysts: “Last Opportunities Before Parabolic Rally!”

While Bitcoin has experienced a significant increase recently, surpassing $67,000, analysts continue to interpret BTC's price movements and make new predictions. At this point, many analysts argue that Bitcoin is currently in a consolidation and reaccumulation phase. Analysts note that the current phase presents an opportunity for investors to...

KOI Announces Strategic Partnership with B² Network

KOI, Kingdom of Inscription, a unique game economy powered by AI and Bitcoin liquidity, is pleased to reveal that they have entered into a partnership with B² Network, the prime choice for Bitcoin’s Layer-2 framework. This partnership is aimed at adding a new layer of liquidity to...

Which Altcoins Will Binance List? Here is the New Strategy!

While Binance, the world's largest cryptocurrency exchange, continues its altcoin listings at full speed, it significantly moves the price of the relevant altcoin with its listings. While investors were looking forward to Binance listing new altcoins, a new statement came from the exchange regarding the altcoin listing policy. At...

ENERGY SECTOR SEES THE BIGGEST SPIKE IN “AI” MENTIONS IN Q1, BEYOND TECH

More energy companies talked about AI in the earnings call in Q1, compared to the previous quarter. The info-tech and communication sectors still account for the highest number of “AI” mentions. The traction of AI development is placing a huge demand on energy globally. Artificial intelligence is...

Big Debate Between Analyst Saying “Bitcoin is Dead” and a 50 Years of Economist

Peter Schiff and Peter Brandt, two analysts who frequently share analyzes about the cryptocurrency market, got into a serious discussion. The discussion first started after gold-loving analyst Peter Schiff commented on the performance of some assets recently. Citing a previous tweet, Schiff mentioned that the price of silver...

Nimble Network Announces a New Collaboration with Anome

Nimble Network, a decentralized artificial intelligence orchestration layer to improve the AI ecosystem, has recently announced an exclusive partnership. As per the company, it is joining forces with Anome (an on-chain game ecosystem focusing on enhancing GameFi, NFT liquidity, NFTFI, and DeFi. On its official account on...

RESEARCH SHOWS AI HELPS IN HEALTH CARE TRANSFORMATION

AI accelerates drug discovery in the healthcare sector. AI transforms health research but requires careful implementation. Faster disease diagnosis with AI, but bias concerns. Artificial intelligence is reshaping health research and speeding up the discovery of drugs and disease investigation. With the help it brings to the healthcare...

Solana and Sui Lead Fastest Blockchain Race with Record Transaction Speeds

In the dynamic world of blockchain technology, transaction speeds have become a pivotal metric for measuring platform performance. CoinGecko’s latest report reveals a notable surge in transaction speeds across leading blockchain platforms, driven by a wave of on-chain activity and the rising popularity of meme coins. Solana Leads...

These Are The 28 Altcoins Binance Has Invested In But Hasn’t Listed Yet

Binance Labs, the investment arm of Binance, the world's largest cryptocurrency exchange, has been investing in many altcoin projects recently. However, Binance does not yet list many of the altcoins it invests in on its exchange platform. Although Binance's investment in a project does not guarantee listing on...

BRITISH MOTORISTS SKEPTICAL OF AI-DRIVEN VEHICLE SUPERIORITY

Three in five British drivers doubt automatic vehicles’ capabilities. AI technology faces skepticism from British motorists. UK drivers think they’re better than AI cars. A recent poll suggests that 60% of UK drivers are convinced they are better than automatic AI-driven vehicle technologies. The UK government hopes to...

CryptoQuant CEO Announces the Bullish End Date in Bitcoin!

Leading cryptocurrency Bitcoin reached a new ATH, surpassing its previous ATH of $69,000 before the halving in April. While the new ATH before Halvig increased investors' bullish expectations, BTC experienced serious corrections afterwards. While these corrections caused speculation that the bear market had started again, CryptoQuant CEO Ki Young...