The class-action lawsuit filed against cryptocurrency exchange giant Binance and its former CEO Changpeng Zhao has been reopened by an appeals court decision. The plaintiffs allege that they purchased securities from Binance and that the platform failed to properly register those assets. This development may have important consequences for Binance and the cryptocurrency market.
Securities lawsuit reopened for Binance
cryptokoin.com As we reported, there was a class-action lawsuit against Binance and its former CEO Changpeng Zhao. This was reopened by decision of the appeals court. The plaintiffs allege that they purchased securities from Binance and that the platform failed to properly register those assets. The following items are important about the case:
- It was opened by a group of cryptocurrency investors in April 2020.
- Investors claim that they purchased ERC-20 tokens EOS, TRX, ELF, FUN, ICX, OMG and QSP from Binance and that these tokens are securities.
- In May 2022, a lower court ruled that the plaintiffs had sued after the statute of limitations expired and dismissed the case.
- The Second District Court of Appeals reversed the lower court’s decision on March 9, 2024, and allowed the plaintiff to refile the case.
The appellate court noted that the plaintiffs “plausibly alleged” that they purchased the tokens on servers in the United States and accessed Binance from the United States. He denied previous claims that Binance has no headquarters or any physical location. Addressing the statute of limitations issue, he stated that the statute of limitations did not start until the plaintiffs purchased the tokens, and that this period was within one year after they filed the lawsuit.
What will be the next phase of the case?
Now, expectedly, the case will be sent back to the district court. The parties will have a chance to discuss whether the tokens meet the definition of a security.
Binance’s financial situation: Reserve report published
Meanwhile, crypto exchange Binance has released its 16th proof of reserve in an effort to provide transparency into the platform’s financial operations.
- According to the snapshot made on March 1, 2024:
- Users’ Bitcoin holdings decreased by 31,998 BTC to 562,000 BTC.
- Users’ Ethereum holdings decreased by 180,000 ETH to 3.98 million ETH.
- Users’ Tether assets increased by 1.71 billion USDT, reaching 19.5 billion.
Proof of reserve, BTC, ETH, USDT, BNB, SOL, FDUSD, XRP, USDC, TUSD, DOGE, MATIC, DOT, LINK, SHIB, ARB, LTC, OP, CHZ, UNI, APT, GRT, SSV, CHR, ENJ It details client and Binance net balances for 1INCH, CRV, WRX, MASK, HFT and BUSD. These developments may have important consequences for Binance and the cryptocurrency market.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.