A federal appeals court has reopened the case against cryptocurrency exchange Binance.
Reuters reported on March 8 that a lawsuit filed by investors accusing Binance of violating U.S. securities laws by selling unregistered tokens has been reopened. According to the document, investors claim that the exchange sold tokens that had lost most of their value.
The appellate court also said investors may bring claims related to purchases made in the year before the lawsuit was filed. 7 tokens investors have purchased through Binance since 2017 – aelf (ELF), EOS (EOS), FUNToken (FUN), Icon (ICX), OMG Network (OMG), Quantstamp (QSP), Tron (TRX) – was quickly lost. Most of what it's worth.
“They alleged that Binance failed to warn them about the ‘material risks’ of the tokens and sought to recover the money they paid.”
Reuters report
However, representatives of virtual currency exchanges argue that U.S. securities laws do not apply because the exchanges are located overseas.
The recent investor lawsuit is not the first time Binance has run into trouble in this country. In late February, a court approved a plea deal in which Binance would pay $4.3 billion for violating anti-money laundering laws. District Judge Richard Jones said the cryptocurrency exchanges are subject to U.S. law but have made a “deliberate decision” not to abide by it.
Approval of this transaction came after Binance was accused of serving customers in sanctioned countries, as well as terrorist organizations and drug traffickers, in violation of US law. Binance founder and CEO Changpeng Qiao admitted that the company and himself were guilty.
Richard Teng, who was previously responsible for all regional markets outside the US, is the new head of the crypto exchange.
