Source: Cointelegraph
Original: “Binance Requests Arbitration for All Members of Securities Class Action”
The cryptocurrency exchange Binance has requested a U.S. federal judge to send all members of a class action lawsuit accusing it of selling securities to arbitration, arguing that the group has waived its right to form a class action under the company's terms of service.
In documents submitted to the New York federal court on May 16, 2025, Binance stated that its terms of service (which the class group allegedly agreed to) include a clause requiring users to agree to arbitration for all claims, along with a clause prohibiting users from initiating class action lawsuits against the cryptocurrency exchange.
Binance stated, “The court should rule that the plaintiffs must arbitrate claims arising after February 20, 2019, even if the court maintains its preliminary decision on claims arising before that date, and that the class action waiver in the 2019 terms of service is enforceable against all claims of the plaintiffs.”
In March of this year, Judge Andrew Carter denied Binance's request to send all class action claims from users who purchased tokens on the exchange between April 1, 2017, and February 20, 2019, to arbitration, and partially denied the related motion for users who purchased tokens after 2019, pending a decision on the applicability of the arbitration clause.
In its latest filing, Binance stated that it updated its terms of service in February 2019 to include the arbitration clause and argued that an earlier version of the terms included a clause informing users that Binance could modify the terms at any time as needed without individual notice.
Judge Carter sided with Binance in March 2022, dismissing the lawsuit. Binance argued that it is not subject to U.S. securities laws because it has no physical headquarters in the United States.
The U.S. Court of Appeals for the Second Circuit overturned this decision in March 2024, and the Supreme Court subsequently declined to hear Binance's appeal in January of the same year.
Since mid-2023, Binance's legal troubles in the U.S. have escalated, when the U.S. Securities and Exchange Commission (SEC) sued the company for selling unregistered securities, which settled for $4.3 billion in November 2023.
Additionally, Binance is facing a class action lawsuit in Canada in April 2024, accusing it of violating securities laws after announcing its exit from the country in May 2023.
Related: Report: U.S. Department of Justice Investigating Coinbase Data Breach
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