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U.S. Judge Blocks Binance Bid to Force Arbitration on Pre-2019 Claims

The court found Binance failed to give clear notice of its 2019 terms to early users.

Binance logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration

Overview

  • Judge Andrew Carter’s ruling lets customers pursue claims arising on or before Feb. 20, 2019 in federal court.
  • The court said Binance provided no direct announcement of an added arbitration requirement or guidance on where to locate it in the 2019 terms.
  • A purported 2019 class-action waiver was deemed ambiguous and therefore unenforceable.
  • Investors allege Binance sold unregistered tokens—ELF, EOS, FUN, ICX, OMG, QSP and TRX—and failed to warn buyers of significant risks.
  • The case, dismissed in 2022 and revived by the Second Circuit in 2024, now proceeds limited to alleged pre-2019 conduct, with Binance noting later claims were withdrawn.