Digital Token Sales Lawsuit: Binance Wins
In a major victory for Binance, a U.S. District Judge has dismissed a lawsuit against the company that involved allegations of digital token sales.
The lawsuit was filed in February by two individuals who claimed that they were defrauded by Binance through its sale of digital tokens.
This is a major win for Binance, which has been facing increasing scrutiny from regulators around the world.
In addition to this lawsuit, the company is also currently being investigated by the United States Securities and Exchange Commission (SEC) for its alleged role in selling unregistered securities.
Binance has denied any wrongdoing and has vowed to fight any charges brought against it by the SEC. This latest victory will likely bolster the company’s confidence as it
The lawsuit was filed in Manhattan by digital token investors who had purchased nine tokens – EOS, QSP, KNC, TRX, FUN, ICX, OMG, LEND and ELF earlier in 2017.
The dismissal is a major win for Binance, which is currently one of the largest cryptocurrency exchanges in the world.
The company has come under fire in recent months from regulators in several countries, including the United States, Japan and South Korea, for allegedly operating without proper licensing.
In addition to this lawsuit, the company is also currently being investigated by the United States Securities and Exchange Commission (SEC) for its alleged role in selling unregistered securities. Binance has denied any wrongdoing as far as this case is concerned.
The plaintiffs claimed that Binance “illegally engaged in millions of transactions” and “failed to disclose material risks” associated with purchasing the tokens, they were therefore seeking a refund of their investments.
The plaintiffs were seeking to recover damages from Binance, alleging the exchange had violated federal and state securities laws in connection with its sale of BNB tokens. Binance has denied the allegations.
While the investors argued that that their claims were time-barred, U.S. District Judge Andrew Carter, posited that the plaintiffs sued too late, having waited more than twelve months after making their purchases.
“The Court concludes that the Plaintiffs filed this action more than one year after the discovery of the facts giving rise to their claims,” Carter wrote in his dismissal order.
“Plaintiffs fail to allege with the requisite particularity when each Plaintiff knew or should have known of the facts underlying their securities law claims.”
He also said domestic securities laws did not apply because Binance was not a domestic exchange, even if it used Amazon computer servers and Ethereum blockchain computers in the United States..
Binance, founded in 2017, is one of the world’s largest cryptocurrency exchanges. It allows users to buy and sell cryptocurrencies such as bitcoin, Ethereum and Litecoin.
This is a huge win for Binance, as the company continues to face regulatory scrutiny in several jurisdictions. Binance has yet to react to the news.
The Securities and Exchange Commission (SEC) of the United States is currently investigating Binance, which is the world’s largest crypto exchange by trading volume.
Binance is a controversial cryptocurrency exchange that has an obscure corporate structure, with a holding firm based in the Cayman Islands.
According to founder and CEO Changpeng Zhao, Binance intends to open “a few offices” across the globe in October.
This dismissal of the lawsuit is a big win for Binance as they continue to face regulatory scrutiny from several different jurisdictions. Binance has yet to make a statement about this news.
The plaintiffs are current and former users of Binance, who claim that the exchange took their money without authorization. They sued in a US district court in New York, with the case number 20-02803.