Binance May Face a Class Action Lawsuit

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The US Supreme Court has rejected an appeal from crypto exchange Binance and its founder, Changpeng “CZ” Zhao, in regards to a lawsuit by investors alleging the exchange illegally sold unregistered tokens that suffered significant losses.

Despite Binance being headquartered outside of the US, the Supreme Court denied their petition to review a lower court’s ruling that US securities laws were applicable to the exchange.

In March, the lower court ruled that the case could proceed as token purchases were completed in the US and transactions were conducted on US servers, despite Binance not being a US-based company.

Binance had filed an appeal in December, arguing that technological advancements have made it easier for investors to participate in foreign financial markets and that this interconnectedness allows Americans to trade on foreign exchanges. However, the US Supreme Court has rejected their appeal.