A US judge rejected Binance's arbitration request, allowing users to file lawsuits in court regarding partial token claims.

According to Reuters, U.S. District Judge Andrew Carter in Manhattan rejected Binance's request to allow customers who accused the exchange of illegally selling unregistered tokens and causing significant losses to resolve their claims through arbitration. Judge Carter stated that customers can file lawsuits in court for claims arising up to February 20, 2019, because Binance failed to adequately notify users of its modified terms of use, requesting that the disputes be resolved through arbitration and waiving the right to file a class-action lawsuit. A Binance spokesperson responded to Judge Carter's ruling, stating, "Binance will actively defend the remaining limited claims in this case, which are unfounded." Customers who suffered losses due to seven tokens—ELF, EOS, FUN, ICX, OMG, QSP, and TRX—accuse Binance of failing to warn of the "significant risks" associated with purchasing them as required by federal and state securities laws and are seeking to recover their payments.