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.
