U.S. Judge Rejects Binance’s Arbitration Request in Seven-Token Lawsuit
Judge Andrew Carter Jr. ruled that pre-February 20, 2019 claims in the Williams v. Binance case will proceed in U.S. federal court, citing unenforceable arbitration provisions.
Fact Check
Multiple independent and credible outlets with high authority and relevance, including Law360 and Reuters, consistently report that a U.S. District Judge, Andrew L. Carter Jr., denied Binance's motion to compel arbitration in a securities class action involving several tokens. Coverage from other outlets such as AOL-hosted Reuters, Economic Times, and Devdiscourse also corroborates the presence of seven tokens in the lawsuit and the judge's direct rejection of Binance's arbitration bid. The reports align on key facts: the decision was made by a U.S. judge, it concerned arbitration, and it was connected to a lawsuit involving multiple (specifically seven) tokens. There are no credible sources contradicting the statement, and the information is derived from reputable legal and financial news channels with strong court reporting practices. Given the consistency, authority, and specificity of the reporting, the statement is highly likely to be true.
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Summary
On February 27, Judge Andrew Carter Jr. denied Binance’s bid to compel U.S. users’ pre-February 20, 2019 token purchase claims into Singapore arbitration in the Williams v. Binance case. The lawsuit accuses Binance and founder Changpeng Zhao of illegally selling unregistered securities, causing investor losses. The court found that arbitration provisions for that period are unenforceable, allowing related claims to proceed in public federal litigation.
Terms & Concepts
- Digital tokens: Blockchain-based assets representing value or rights, commonly traded on exchanges like Binance.