Catenaa, Friday, May 23, 2025-Binance, the world’s largest cryptocurrency exchange, has asked a US federal court to dismiss a class action lawsuit brought by American investors, citing a binding arbitration clause in its user agreement.
In a filing submitted Friday, Binance argued that the class action—filed in the Northern District of California—should be resolved through private arbitration, not litigation. The lawsuit accuses Binance of promoting unregistered digital tokens and misleading investors about the safety and regulatory status of certain crypto assets.
The case has been contentious. In March, US District Judge Andrew L. Carter Jr. ruled that users who bought tokens before Binance updated its terms on Feb. 20, 2019, could not be forced into arbitration. However, the judge vacated that decision in April, reopening the matter for further briefing.
Binance now contends that all plaintiffs accepted an agreement mandating arbitration under the rules of the Hong Kong International Arbitration Centre.
The exchange claims the clause was prominently disclosed during account registration, covering any disputes arising after February 20, 2019.
The class action is part of a broader legal saga for Binance, which has faced mounting regulatory scrutiny worldwide. In the US, Binance settled for $4.3 billion in 2023 over compliance failures and unregistered securities sales. Founder Changpeng Zhao pleaded guilty to a related charge and paid $150 million personally.
Binance is also under legal fire in Canada, where a separate class action was filed in 2024 following its market withdrawal.
