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US Supreme Court Declines Binance Appeal in Class-Action Lawsuit

Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng “CZ” Zhao face ongoing legal challenges after the US Supreme Court declined to hear their appeal.

On Jan. 13, the US Supreme Court rejected Binance’s petition to review a lower court ruling. The case stems from a 2020 class-action lawsuit filed by Chase Williams, alleging that Binance illegally sold unregistered securities to American investors, resulting in significant financial losses. The Supreme Court’s decision allows the lawsuit to proceed, as the lower court determined that US securities laws applied since token purchases were finalized on US servers.

The Supreme Court’s decision was issued on Jan. 13, 2025, following Binance’s appeal in December 2024.

While Binance operates globally and lacks a physical headquarters, the case centers on transactions involving US investors and servers.

Binance argued that advancements in technology allow US investors to trade on foreign exchanges, challenging the application of US securities laws. However, the lower court ruled that transactions occurring on US servers fall under American jurisdiction. This decision underscores the growing scrutiny of global crypto exchanges operating within US markets.

The lawsuit alleges Binance operated as an unregistered securities exchange and broker-dealer, selling tokens classified as securities without proper registration. Binance and CZ have faced increasing legal troubles in the US, including a $4.3 billion settlement with the Department of Justice in 2023 for violations related to money laundering and terrorism financing laws. CZ also served a four-month prison sentence in 2024 for enabling money laundering on the platform.

Binance’s legal woes extend beyond the US, with a class-action lawsuit in Canada and a separate $1.8 billion claim from the FTX bankruptcy estate over an alleged fraudulent share deal. The latest Supreme Court ruling further intensifies Binance’s regulatory challenges, with significant implications for the crypto industry’s future legal and operational framework in the United States.

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