Appeals court overturns dismissal of class-action lawsuit against Binance

A class-action lawsuit led by investors against cryptocurrency exchange Binance has been reinstated by a United States appeals court, overturning a previous ruling. The investors claimed that Binance had transparency issues in its sale of alleged securities and were seeking to cancel their contracts with the exchange. The district court initially dismissed the lawsuit, stating that the claims were untimely, but the appeals court disagreed and deemed the initial filing to be timely. Binance is also facing legal challenges from the U.S. Securities and Exchange Commission (SEC) regarding the custody of customer assets. In June 2023, the SEC sued Binance, Binance.US, and its founder Changpeng “CZ” Zhao for selling unregistered securities and mixing customer assets. In November 2023, Binance reached a $4.3 billion settlement with the U.S. Department of Justice for violating money laundering and terrorism financing laws. Zhao pleaded guilty to money laundering charges as part of the settlement and awaits his criminal sentencing hearing in April.