New York Judge Rejects Binance's Request to Refer U.S. Crypto Investors' Claims to Arbitration
Svmuu News: U.S. District Judge Andrew Carter Jr. of the Southern District of New York ruled that Binance may not compel a group of U.S. customers to arbitrate claims for losses arising from the purchase of cryptocurrency tokens on its global platform prior to February 20, 2019; the related class-action lawsuit will continue to be heard in open court. The judge held that Binance’s 2019 arbitration clause does not apply to the aforementioned claims because Binance failed to provide users with adequate notice when it unilaterally amended the 2017 version of its Terms of Service, and the 2017 version did not include arbitration or class action waivers. The judge noted that Binance relied solely on general terms and conditions to amend the terms and posted the updated 2019 terms on its website; there was no evidence that the exchange provided users with any individual notice or formal announcement. The judge also ruled that the 2019 arbitration clause cannot be applied retroactively to claims arising prior to its effective date. The case, Williams v. Binance, was filed by five U.S. investors from California, Nevada, and Texas, who allege that Binance and its founder, CZ, illegally sold unregistered securities and failed to register as a broker-dealer. Binance responded by stating that all claims arising on or after February 20, 2019, have been voluntarily dismissed by the plaintiffs and that it will vigorously defend against the remaining claims. (Cointelegraph)
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