The post Binance and Changpeng Zhao lose US Supreme Court appeal appeared on BitcoinEthereumNews.com.

The United States Supreme Court dismissed Binance and Changpeng Zhao’s appeal against a March 2024 decision allowing a class action suit. The Court upheld the 2nd Circuit’s ruling, noting that domestic laws bound the cryptocurrency exchange.  According to reports, the Appellants contended the 2nd U.S. Circuit Court of Appeals in Manhattan’s decision, highlighting domestic laws applied to token sales within the U.S.  Supreme Court dismisses Binance and Zhao’s Appeal against a class action suit  The Supreme Court enforced the 2nd Circuit Court’s decision, allowing a class action suit filed in 2020 against the exchange to proceed. Investors who purchased ICX, OMG, QSP, TRX, FUN, EOS, and ELF in 2017 argued in the lower Court that token purchases occurred within the United States and domestic laws were applicable in determining the exchange’s liability.  The investors alleged that Binance failed to warn its customers about the risks associated with the digital tokens before they made their purchases as required by the US domestic securities laws.   Binance countered these arguments, emphasizing that it was not a United States entity since its headquarters were not within the country. The exchange relied on the 2010 Supreme Court decision of Morrison vs National Australia Bank, which limited the application of domestic laws on extraterritorial entities.  In March 2022, Andrew Carter, a U.S. District Judge, dismissed the investor’s application, stating that the case was filed out of time. The Judge also contended that domestic laws could not apply in the matter despite Binance having used Amazon computer servers and Ethereum blockchain computers within the country.  In March 2024, the 2nd Circuit Court of Appeals in Manhattan reportedly revived the suit against the exchange. In a 3-0 decision, the Court ruled that despite Binance not being registered as a US company, domestic laws remained applicable since the digital…

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Filed under: News - @ January 13, 2025 8:28 pm