In a rather audacious turn of events, the illustrious crypto exchange Binance has beseeched a US federal judge to whisk away all members of a class-action lawsuit—yes, the one alleging it sold securities—into the cozy confines of arbitration. Their argument? The group, in a fit of collective amnesia, has apparently waived their right to form a class action under the company’s rather peculiar terms. How charming! 😏
In a filing dated May 16, the exchange proclaimed to a New York federal court that its terms of service, which it insists the class group cheerfully agreed to, contains a delightful clause mandating users to arbitrate all claims. Additionally, there’s a clause that prevents users from launching class actions against the crypto exchange. Because who needs collective action when you can have arbitration, right? 😂
“The Court should hold that Plaintiffs are required to arbitrate claims that accrued after Feb. 20, 2019,” Binance declared, with all the confidence of a cat walking on a hot tin roof. They even suggested that the class-action waiver in the 2019 Terms of Use is enforceable for all of Plaintiffs’ claims. How very convenient! 🧐
In March, the ever-diligent Judge Andrew Carter denied Binance’s request to send all of the class action’s claims to arbitration for users who purchased tokens on the exchange between April 1, 2017, and Feb. 20, 2019. He even partially denied the motion for users who bought tokens after 2019 until a decision could be made regarding the extent of the arbitration clause. A true nail-biter! 🥳
Binance, in its latest filings, claimed it updated its terms in February 2019 to include the arbitration clause. They argued that an earlier version of the terms of service included a clause informing users that Binance could amend the terms as needed without any individual notice. Because who doesn’t love surprises? 🎉
Binance’s Legal Follies: A Previous Dismissal
In a previous act of this legal drama, Judge Carter had sided with Binance and dismissed the suit in March 2022. Binance argued, with a straight face, that it isn’t beholden to US securities laws because it doesn’t have a physical headquarters in the country. A classic case of “not my circus, not my monkeys.” 🙈
However, the US Court of Appeals for the Second Circuit, in a plot twist worthy of a soap opera, overturned that decision in March 2024. The Supreme Court later declined to hear Binance’s appeal in January of that year. Talk about a rollercoaster ride! 🎢
Binance’s legal entanglements in the US have escalated since mid-2023, when the Securities and Exchange Commission decided to play hardball and sued the company for selling unregistered securities. This little escapade was settled for a cool $4.3 billion in November 2023. Just a casual Tuesday for Binance! 💸
To add to the drama, Binance was also slapped with a class action in Canada in April 2024 for allegedly violating securities laws after it announced its departure from the country in May 2023. Because why not? The more, the merrier! 🎭
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2025-05-20 05:42