tl;dr
A federal appeals court has ruled that Binance must face a class-action lawsuit from U.S.-based crypto investors who allege the exchange allowed them to buy and trade unregistered securities. Domestic securities laws have been established to apply to transactions on exchanges based outside the U.S.,...
A federal appeals court has ruled that Binance must face a class-action lawsuit from U.S.-based crypto investors who allege the exchange allowed them to buy and trade unregistered securities.
Domestic securities laws have been established to apply to transactions on exchanges based outside the U.S., despite Binance's argument that it was a decentralized exchange not subject to U.S. jurisdiction. The ruling has broader implications for securities cases, and has been filed as supplemental authority in the SEC's case against Binance.
Last week, an appeals court ruled that a crypto exchange, even if it says it isn't based in the U.S., may still be subject to U.S. laws if there's enough of a connection to the U.S. In a putative class action lawsuit filed against global crypto exchange Binance, that nexus turned out to be just sufficient enough that a trio of judges found a group of crypto investors had enough standing to bring a lawsuit against the exchange.
The fact that there is no non-U.S. jurisdiction for the plaintiffs to sue in also bolstered their case, the judges seemed to indicate. And the same arguments support the role of state law claims, the judges wrote.
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