Judge Blocks Binance Bid to Force US Crypto Claims into Arbitration

A United States federal judge, Andrew Carter Jr., ruled that Binance cannot compel a group of US customers to arbitrate claims concerning crypto tokens bought on its global platform before February 20, 2019. The decision keeps a major class action lawsuit in open federal court because the judge found that the 2019 arbitration clause was not binding on earlier claims. Binance unilaterally shifted its terms of use without providing users sufficient individual notice or formally announcing the new arbitration provision, relying only on a general change-of-terms clause and website posting. Furthermore, the judge ruled that the 2019 arbitration clause could not be applied retroactively to claims arising before its effective date, as the contract did not clearly state it would cover earlier conduct. The case, Williams v. Binance, involves US investors alleging Binance and founder Changpeng Zhao illegally sold unregistered securities. Binance stated that claims accruing on or after February 20, 2019, were voluntarily dismissed by plaintiffs, and the company will vigorously defend the remaining claims in court rather than private arbitration in Singapore.

(Source：Cointelegraph)