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A federal appeals court has reinstated its lawsuit against cryptocurrency exchange Binance.
Reuters <a href="https://www.reuters.com/technology/binance-must-face-revived-investor-lawsuit-us-over-crypto-losses-2024-03-08/" target="_blank" rel="noopener noreferrer nofollow">reported</a> on March 8 that the lawsuit, in which investors accused Binance of violating U.S. securities laws by selling unregistered tokens, was renewed. According to the document, investors claim that the exchange sold tokens that lost most of their value.
The appeals court also said investors could bring claims related to purchases made in the year before the lawsuit was filed. Seven tokens — aelf (ELF), EOS (EOS), FUNToken (FUN), Icon (ICX), OMG Network (OMG), Quantstamp (QSP), and Tron (TRX) — that investors bought through <a href="https://crypto.news/tag/binance/" target="_blank" rel="noopener noreferrer nofollow">Binance</a> starting in 2017 soon lost most of their value.
<blockquote class="wp-block-quote">
 “They claimed that Binance failed to warn them about the tokens’ “significant risks” and sought to recoup what they paid.” <cite>Reuters report</cite>
</blockquote>
However, representatives of the cryptocurrency exchange claim that U.S. securities laws do not apply because its exchange is located outside the country.
The recent investor lawsuit is not the first time Binance has had trouble in the country. At the end of February, a court <a href="https://crypto.news/cftc-commissioner-says-binances-4-3-billion-settlement-due-to-rule-breaking-not-fraud/" target="_blank" rel="noopener noreferrer nofollow">approved</a> Binance’s plea deal for violating anti-money laundering laws, in which it must pay $4.3 billion. District Judge Richard Jones noted that the crypto exchange was subject to U.S. laws but made a “deliberate decision” not to follow them.
The approval of the deal came after Binance was accused of serving clients in sanctioned countries, as well as terrorist organizations and drug traffickers, in violation of U.S. laws. The founder and CEO of Binance, Changpeng Zhao, <a href="https://crypto.news/binance-ceo-changpeng-zhao-steps-down-with-response-to-the-sec-following-guilty-plea/" target="_blank" rel="noopener noreferrer nofollow">admitted</a> the company and himself guilty.
<a href="https://crypto.news/new-binance-ceo-richard-teng-heres-what-you-need-to-know/" target="_blank" rel="noopener noreferrer nofollow">Richard Teng</a>, who was previously responsible for all regional markets outside the United States, <a href="https://crypto.news/richard-teng-takes-the-helm-at-binance-promising-a-shift-away-from-outlawed-behaviour/" target="_blank" rel="noopener noreferrer nofollow">became</a> the new head of the crypto exchange.
You might also like: <a href="https://crypto.news/binance-us-coo-claims-sec-lawsuit-led-to-banks-withdrawing-support-strangling-business/" rel="noopener noreferrer nofollow"> Binance.US COO claims SEC lawsuit led to banks withdrawing support, strangling business </a>

Binance faces another lawsuit over US investors crypto losses

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