Judge blocks Binance from pushing class action suits over token sales into arbitration

A United States federal judge has issued a ruling preventing Binance, the world’s largest cryptocurrency exchange, from forcing a series of class action lawsuits into private arbitration. The legal disputes involve allegations that Binance facilitated the sale of unregistered securities to investors. U.S. District Judge Andrew Carter in Manhattan determined that the exchange could not rely on the arbitration clauses found in its terms of service to avoid public litigation in this instance. The ruling represents a significant blow to Binance’s efforts to settle customer disputes behind closed doors, allowing the plaintiffs to pursue their claims in federal court. The lawsuits center on several digital tokens that the plaintiffs argue should have been registered with the SEC, and the decision could have broader implications for how crypto exchanges manage user agreements and regulatory compliance in the U.S.

Source: Judge blocks Binance from pushing class action suits over token sales into arbitration