The United States Federal Appeals Court has reopened a lawsuit against Binance. Investors accuse Binance of selling unregistered tokens, thereby violating US securities laws. The Appeals Court ruled 3-0 in favor of applying class action to US securities laws, as token purchases became irrevocable in the United States. The tokens involved include ELF, EOS, FUN, ICX, OMG, QSP, and TRX, which subsequently experienced significant value depreciation. Binance argues that US securities laws do not apply because its exchange is located overseas.

Wu learned that, according to Reuters, the U.S. Federal Appeals Court has restarted a lawsuit on Friday, in which investors accuse Binance of selling unregistered tokens, resulting in a significant loss of value and violating U.S. securities laws. The U.S. Second Circuit Court of Appeals ruled 3-0 that the proposed class-action lawsuit falls under U.S. securities laws because once investors complete their payment on Binance, the tokens they purchased become irrevocable in the United States. The Appeals Court also stated that investors can file claims for purchases made within the year prior to the lawsuit, covering seven tokens: ELF, EOS, FUN, ICX, OMG, QSP, and TRX, which quickly lost most of their value. Binance argued that U.S. securities laws do not apply because its exchange is located overseas.

U.S. Federal Appeals Court Reopens Unregistered Token Sale Lawsuit Against Binance