End of suspense for Binance in a case between it and investors. The latest attempt to avoid class action was rejected by the 2nd Court of Appeal in Manhattan: the trial will take place.
on January 13, 2025 at 7:00 p.m.
The US Supreme Court rejects Binance's request: the trial will take place
Monday January 13. By rejecting the appeal filed by the Binance exchange and its founder, Changpeng Zhao, the Manhattan Supreme Court confirms that a trial will take place in the case between the platform and investors.
Although the Securities and Exchange Commission (SEC) will soon no longer be led by Gary Gensler, the ongoing cases do not stop.
Binance is accused by investors of having proposed the sale of unregulated tokens having lost a large part of their value : in particular ELF, EOS, FUN, ICX, OMG, QSP and TRX.
According to the complaint filed, the purchases were made on the platform in 2017 without any warning being made regarding the extreme volatility of the price nor the associated risks.
👀 Discover the origins of the war between SEC and cryptocurrencies
The exchange platform tried to appeal the decision rendered by another court of law who had validated the collective action, known as “class action“.
To escape such a trial, Binance reiterated that it is not an American company. However, the 2nd Court of Appeal in Manhattan ruled that, since the cryptos had indeed been purchased in the United States, American law could apply.
Moreover, Binance voluntarily cultivates mystery about the location of its headquarters. A strategy that allows you to escape regulators for a while, but which ends up turning against the platform. Without choosing a specific location, the exchange leaves it to American judges to decide for him.
Given that the platform uses Amazon servers located on American territory, the judges had already declared in March 2024 that Binance was indeed a company subject to SEC rules.
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Will the United States really stop prosecuting crypto companies?
This case has no connection with the 2023 trial, in which Binance pleaded guilty to violating anti-money laundering laws. The exchange was fined $4.3 billion, along with a 4-month prison sentence for the then CEO, Changpeng Zhao.
📈 2024, the year of all records for the Binance exchange!
President Donald Trump has promised to putting an end to the SEC's anti-crypto crusadebut one question remains: will the United States give up its judicial system that makes the whole world tremble?
It's one thing to give up shooting yourself in the foot, as the country did by preventing its businesses from growing.
But won't they continue to use this steamroller to crush competing companiesthus allowing their startups to develop, catch up and take a dominant place in this market? To be continued.
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Cryptocurrency expert, Marc-Antoine began his journey in Web 3 alongside David Prinçay (current president of Binance France) in the French Cryptocurrency Club. Since then, it is by writing articles in the best-known crypto media in France that he has spread the good word. If you've read an article about crypto, there's a good chance you've read one of his articles. NFT, Blockchain, Web 3, DeFi, there is no sector that is foreign to it. And don't ask him what the next coin to buy is: it's a maximalist Bitcoin (yes, no one is perfect).
Marc-Antoine Caen Poletti
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