The Lawsuit Against Binance in the USA Has Been Rejected. The lawsuit was filed for violating US securities law by selling unregistered tokens to cryptocurrency exchange Binance and failing to register as an exchange or broker-dealer. But a federal judge on Thursday dismissed the case.
Binance, the world's largest cryptocurrency exchange in terms of trading volume, has won a lawsuit for allegedly violating US securities law with the sale of unregistered tokens.
Meanwhile, the lawsuit was filed by digital token investors who had bought nine tokens from Binance since 2017 – EOS, QSP, KNC, TRX, FUN, ICX, OMG, LEND and ELF, and soon lost most of their holdings.
Investors who wrote a 327-page complaint said that Binance incorrectly processed millions of transactions. He also claimed that the company failed to warn about the risks involved in purchasing tokens.
For the lawsuit filed in Manhattan, U.S. District Judge Andrew Carter said investors filed the lawsuit too late, according to Reuters. He also stated that even if Binance uses Amazon computer servers and Ethereum blockchain computers in the United States, local securities laws do not apply because Binance is not a local exchange.