Binance Faces Revived Investor Lawsuit in US Over Crypto Losses After Federal Appeals Court Ruling

A federal appeals court decision has revived a lawsuit against Binance, the world's largest cryptocurrency exchange, where investors accused the platform of violating U.S. securities laws by selling unregistered tokens that experienced significant losses in value. The 2nd U.S. Circuit Court of Appeals in Manhattan ruled unanimously that domestic securities laws applied to investors' purchases of tokens through Binance, as the transactions became irrevocable in the United States once payment was made, bolstered by Binance's use of domestic Amazon computer servers. The decision overturns a previous ruling by U.S. District Judge Andrew Carter and allows investors to pursue claims related to token purchases made within the year before the lawsuit was filed. The lawsuit involves seven tokens - ELF, EOS, FUN, ICX, OMG, QSP, and TRX - purchased through Binance starting in 2017, with plaintiffs seeking to recoup their losses. Binance had argued that U.S. securities laws did not apply as its exchange was based outside the country, citing the Morrison v National Australia Bank decision, but the court rejected this argument. Binance and its legal representatives have yet to comment on the decision.