Binance Seeks to Force Class-Action Lawsuit Members into Arbitration

Binance cites Hong Kong International Arbitration Centre rules in its motion to dismiss U.S. class action lawsuit, highlighting ongoing legal challenges following its $4.3B regulatory settlement.

Summary

Binance has filed a motion to dismiss a class action lawsuit in the Northern District of California, arguing that users agreed to resolve disputes through binding arbitration. The exchange faces allegations of securities law violations and misleading investors about listed assets. A March 2024 ruling by Judge Carter initially denied arbitration for pre-2019 claims, but this decision was later vacated for further review.

Terms & Concepts
  • Arbitration: A private method of settling disputes outside of court where both parties agree to be bound by the decision of a neutral third party arbitrator.