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Binance Faces Class Action Lawsuit!

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The U.S. Supreme Court recently declined to hear the appeal from Binance and its founder Changpeng Zhao, upholding the lower court's decision that U.S. securities law applies to the cryptocurrency exchange. This case involves a class action lawsuit brought by investors against Binance, accusing the exchange of illegally selling unregistered tokens, resulting in a significant decrease in the value of these tokens.

On January 13, 2025, the Supreme Court rejected the request for a review, meaning the lower court's ruling remains in effect. Although Binance does not have a physical headquarters in the U.S., the lower court determined that the tokens purchased by investors in the U.S. and the transactions conducted through U.S. servers make U.S. securities law applicable.

Other Legal Challenges Faced by Binance

Since the U.S. Securities and Exchange Commission filed a lawsuit against Binance and Changpeng Zhao in mid-2023, the legal battles for Binance in the U.S. have escalated, accusing it of illegally selling unregistered securities and providing unauthorized services to U.S. citizens. In November 2023, Binance reached a $4.3 billion settlement agreement with the U.S. Department of Justice to resolve allegations related to money laundering and terrorism financing.

Additionally, in April 2023, Binance faced a class action lawsuit for allegedly violating Canadian securities law and subsequently announced plans to exit the Canadian market.

The FTX bankruptcy management agency has also sued Binance and Changpeng Zhao, accusing them of conducting “fraudulent” stock trading in 2021, with claims amounting to as much as $1.8 billion. Meanwhile, Changpeng Zhao and Binance are also facing separate lawsuits for allegedly laundering stolen cryptocurrency in August 2024.

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