A federal judge in Manhattan has ruled that customers accusing Binance of selling unregistered tokens can pursue their claims in court rather than through arbitration. The decision rejects the cryptocurrency exchange's attempt to enforce arbitration for these disputes. Binance, the world's largest crypto platform, faces ongoing legal challenges over alleged illegal sales.
On Thursday, U.S. District Judge Andrew Carter in Manhattan issued a ruling denying Binance's motion to compel arbitration in a lawsuit brought by customers. The plaintiffs claim that the exchange, described as the world's largest cryptocurrency platform, illegally sold unregistered tokens that subsequently lost much of their value.
The judge's decision allows the customers to proceed with their claims directly in federal court, bypassing the arbitration process that Binance had sought to impose. This development comes amid broader scrutiny of Binance's operations, though the ruling focuses specifically on the arbitration issue.
No further details on the timeline of the token sales or the extent of the losses were provided in the court's decision as reported. The case highlights tensions between cryptocurrency exchanges and regulators over compliance with securities laws in the US.
Binance has not issued an immediate public response to the ruling, but the exchange continues to face multiple legal actions related to its trading practices and token offerings.
