New York Court Blocks Binance Arbitration Bid in US Crypto Class Action

A federal judge in New York has ruled that Binance can’t compel a group of US investors to resolve pre-2019 claims through private arbitration, allowing the proposed class action to proceed in open court.

Judge Andrew Carter Jr. of the Southern District of New York determined that users who traded on Binance.com before Feb. 20, 2019 were not bound by an arbitration clause introduced in updated terms of service that year. The court found there was insufficient evidence that customers received clear notice of the revised agreement, which added arbitration and class action waiver provisions absent from the 2017 version.

Williams v. Binance Lawsuit Moves Forward in Federal Court

The case, Williams v. Binance, involves five US investors alleging the exchange and its founder Changpeng Zhao unlawfully offered unregistered securities and failed to register as a broker dealer. While parts of the lawsuit have been dismissed previously, remaining claims tied to transactions before the 2019 terms update will now proceed in federal court.

The ruling emphasizes that online platforms cannot retroactively impose arbitration provisions without explicit user consent. The decision ensures that judges, rather than private arbitrators, will evaluate the remaining securities-related allegations.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.