PANews reported on May 20 that according to Cointelegraph, Binance has requested a federal judge to transfer all members of a class-action lawsuit to arbitration. The lawsuit accuses Binance of selling unregistered securities. Binance argues that users waived their right to class-action litigation when agreeing to its terms of service and promised to resolve disputes through arbitration. Documents filed with the New York Federal Court on May 16 show that Binance's terms of service include arbitration clauses and class-action waivers applicable to users who registered after February 20, 2019. Previously, Judge Andrew Carter partially rejected Binance's arbitration request, involving users who purchased tokens between April 2017 and February 2019.
In March 2022, the judge initially dismissed the case, but in March 2024, the US Second Circuit Court of Appeals overturned the decision, and the Supreme Court also refused to hear Binance's appeal. In November 2023, Binance reached a $4.3 billion settlement with the US Securities and Exchange Commission (SEC) over similar allegations. In April 2024, Binance also faced a class-action lawsuit in Canada regarding securities violation claims before its exit from the country's market.
