Judge blocks Binance's attempts to avoid class action suits
A federal judge in New York has ruled against Binance's efforts to push class action lawsuits related to token sales into arbitration. This is another legal victory for investors who have been harmed by the actions of one of the world's largest crypto exchanges.
The lawsuits against Binance were filed in 2020 amid a wave of class action suits against leading crypto exchanges and token issuers. Investors accuse Binance of illegally selling unregistered securities, as well as other violations related to the listing and trading of tokens on the platform.
Binance had tried to move the consideration of these lawsuits to arbitration, citing the platform's terms of use. But the judge rejected these attempts, ruling that the class actions must be heard in court.
Binance's regulatory troubles worldwide
The court ruling is another blow to the world's largest crypto exchange, which has long faced legal issues in various jurisdictions. Binance regularly faces claims and lawsuits from regulators and investors in different countries, including the UK, Italy, Malaysia and Singapore.
Experts believe that such legal proceedings will inevitably continue, as Binance, like many other major players in the crypto industry, face growing pressure from regulators around the world. The company will have to seriously rethink its business practices to comply with regulatory requirements and avoid further lawsuits.