BCGAME - Free 5BTC Daily Bonus!- Supreme Court continues action against Binance.
- Binance faces challenges with US jurisdiction.
The United States Supreme Court has issued a significant ruling against Binance, allowing collective action accusing the exchange of selling unregistered tokens proceed.
The court dismissed Binance’s defense, which argued that the U.S. lacked jurisdiction in the case. The former investors accuse the exchange of illegally trading tokens such as EOS, TRX and OMG, and of failing to communicate the risks of investing in small-cap cryptocurrencies.
“Binance believed that U.S. securities laws did not apply to it, citing the company’s location outside the United States. However, the Supreme Court highlighted U.S. investors’ increasing access to foreign markets, a direct consequence of technological advances that have expanded those markets and American participation,” Binance said.
The court’s decision not only keeps the lawsuit moving forward, but it could also set a precedent for future legal action against Binance and other exchanges. Additionally, Binance is facing other federal investigations and allegations of illicit activities, which increases legal pressure on the company.
Changpeng Zhao, known as “CZ,” the former CEO of Binance, has played an active role in the Supreme Court appeal. Detained on related charges nearly a year ago, CZ no longer has an official role at the company, but he still has a vested interest in the outcome of this case due to his previous connection to the exchange.
“The case is a civil action, which is distinct from the criminal charges the company faces, but it could still weaken Binance’s position in future legal challenges. The ruling demonstrates the ability of U.S. courts to hold foreign cryptocurrency exchanges liable for activities that affect American investors,” legal experts said.
Observers point out that Binance will face difficulties in achieving a favorable outcome, given the nature of the case and the unlikely leniency of the incoming presidential administration.
