Binance has filed a motion to dismiss a class-action lawsuit for allegedly selling unregistered securities in the latest court battle between the world’s largest cryptocurrency exchange and the United States. Binance’s Former CEO, Changpeng Zhao, and his team argue that the 2019 Terms of Use include an arbitration clause that allows out-of-court settlement.
This move comes after U.S. District Judge Andrew Carter denied the exchange’s request for arbitration for users who purchased “unregistered securities” between April 1, 2017, and February 20, 2019. The court argues that Binance’s arbitration appeal won’t stand because the amended terms took place after the alleged act had been committed. The exchange is pushing for the court to uphold this arbitrary clause.
Binance has had to deal with legal challenges in North America over the last two years. The U.S. SEC filed a lawsuit against the exchange for selling unregistered securities in June 2023. This was followed by a class-action suit in Canada for the same offence.