According to Foresight News , citing Reuters, U.S. District Judge Andrew Carter in Manhattan rejected Binance's request for customers to arbitrate allegations of illegally selling unregistered tokens. The judge ruled that users can file lawsuits against claims arising before February 20, 2019, because Binance failed to adequately notify users of its changes to the terms of use, including requests for arbitration and the waiver of the right to class action.
The judge stated that there was no evidence Binance had announced an arbitration clause or informed users in its terms of service where to find it, and that the relevant exemptions in its 2019 terms of service were vague and unenforceable. The lawsuit involves losses in seven tokens: ELF, EOS, FUN, ICX, OMG, QSP, and TRX, with Binance founder CZ also named as a defendant. A Binance spokesperson stated that they will defend against the remaining claims in the case.
