Dismissal of Binance and Zhao’s Appeal: Supreme Court Supports Class Action

user avatar

by Giorgi Kostiuk

2 years ago

The US Supreme Court has dismissed Binance and Changpeng Zhao's appeal against the decision allowing a class action suit regarding tokens.

Supreme Court Decision

The US Supreme Court upheld the 2nd Circuit Court's decision, allowing the class action suit against Binance to proceed. Investors who purchased ICX, OMG, QSP, TRX, FUN, EOS, and ELF in 2017 argued that the sales happened within the US, thereby necessitating the application of US laws. Binance countered these claims, stating it is not a US entity as its headquarters are outside the country.

Binance's Appeal Efforts

Binance appealed to the Supreme Court, arguing that the 2nd Circuit misapplied the Morrison precedent by holding the exchange accountable across various stages of securities transactions. Binance highlighted that the issue was of global significance for financial markets and requested the Supreme Court to clarify the application of US laws to foreign trading platforms.

Context and Case Significance

Binance admitted to violating federal anti-money laundering laws in a separate case in February 2024. The company stated that it has upgraded its KYC protocols to prevent illegal activities on its platform.

The Supreme Court's decision to support the class action against Binance sets a significant precedent for international cryptocurrency platforms and their compliance with US law.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

US Spot Bitcoin ETFs See Major Inflows After Quiet Week

US spot Bitcoin ETFs saw a remarkable inflow of nearly $100 million on Monday, marking a significant turnaround from the previous week.

user avatarKofi Adjeman

Circle Raises $100 Million from Binance through Share Sale

Circle has raised $100 million by selling shares to Binance as part of a commercial agreement to promote USDC.

user avatarNguyen Van Long

Circle and Binance Extend Partnership with New Agreement

Circle and Binance have renewed their partnership with a new agreement that replaces previous contracts. This arrangement allows Binance to hold shares in Circle while promoting the USDC stablecoin on its platform.

user avatarSatoshi Nakamura

Coincheck Group Announces Leadership Change

Coincheck Group has confirmed the resignation of Executive Chairperson Takashi Oyagi, effective September 21, for personal reasons, and has approved a new leadership transition structure.

user avatarJesper Sørensen

MEXC Launches Initiatives to Enhance Access to Financial Markets

MEXC has launched several initiatives, including the Trade Wall Street, Without Walls campaign, to enhance access to traditional financial markets.

user avatarRajesh Kumar

MEXC Introduces Stock Trading Handbook for Crypto Traders

MEXC has launched the Stock Trading Handbook to assist crypto traders in transitioning to the stock market as part of its Opportunity Compass initiative.

user avatarLucas Weissmann

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.