BSC News

Federal Judge DIsmissed Lawsuit Accusing Binance of Violating U.S. Securities

The lawsuit alleges plaintiffs were not appropriately notified of the dangers of investing in cryptocurrency.

Binance Secures Dismissal

A Federal Judge in the U.S. District Court, Southern District of New York, has dismissed a lawsuit––Anderson et al v Binance et al–– accusing Binance of violating United States securities laws.

The claim made against Binance alleged the cryptocurrency exchange failed to register as an exchange or broker-dealer and sold unregistered tokens, according to a March 31 article by Jonathan Stempel in Reuters. 

"Plaintiffs must allege more than stating that plaintiffs bought tokens while located in the U.S. and that title passed in whole or in part over servers located in California that host Binance's website," explained U.S. District Judge Andrew Carter.

The suit was put forward by a group of investors who made purchases in EOS, QSP, KNC, TRX, FUN, ICX, OMG, LEND, and ELF. The suit alleged that Binance failed to sufficiently warn investors about the dangers of investing in cryptocurrency tokens. The plaintiffs sought to recoup their losses from their investments that presumably lost value. 

The case was ultimately dismissed based on the latency of the claims––over a year since the initial purchases––and the judge further noted that Binance is not considered a domestic exchange, so the laws do not apply to them. 

What is interesting here is the notion that Binance is not considered a domestic exchange despite having jurisdictional authority to operate out of the United States.

Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for BNB Chain and crypto! 

Follow us on Twitter and Instagram!

For those looking for tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, Cryptonomics Explainers, and Trading Tool Kits from BSC News.

Check out the Web3Wire Linktree to keep up with all relevant Web3 and Crypto!

How would you rate this article?

Related News