Binance wants arbitration for all members of securities class suit
Binance has requested a US federal judge to compel members of a class-action lawsuit to arbitration, citing a clause in its terms of service that waives the right to class actions. The exchange argues that users agreed to arbitrate all claims, particularly those arising after February 20, 2019. A previous ruling by Judge Andrew Carter denied Binance's request for arbitration for claims related to token purchases made between April 1, 2017, and February 20, 2019, while partially allowing it for later claims. Binance updated its terms in February 2019 to include the arbitration clause and contends that users were informed of potential amendments to the terms. The case was previously dismissed in March 2022, but the US Court of Appeals for the Second Circuit overturned that decision in March 2024. Binance faces increasing legal challenges in the US, including a $4.3 billion settlement with the SEC for selling unregistered securities and a class action in Canada for alleged securities law violations.
