The Supreme Court refused to hear Binance’s arguments for dismissal
The US Supreme Court has rejected an appeal from Binance and its founder, Changpeng “CZ” Zhao, allowing a class-action lawsuit against the cryptocurrency exchange to move forward. The lawsuit, originally filed in 2020 by investor Chase Williams, accuses Binance of selling unregistered securities and operating without proper licensing in the US.
The case centers on allegations that Binance facilitated the sale of tokens classified as securities without registering as a securities exchange or broker-dealer. While Binance is not based in the US and lacks a physical headquarters, the lawsuit argues that transactions were finalized on American soil using US-based servers.
This led a lower court in March 2023 to rule that US securities laws applied, enabling the case to proceed. Binance contested this decision, arguing that technological advancements allow Americans to access foreign markets more easily, but the Supreme Court’s denial means the original ruling stands.
This lawsuit is one of several legal challenges Binance and its founder are facing. In November 2023, the company agreed to a $4.3 billion settlement with the US Department of Justice over money laundering and terrorism financing violations. Binance and Zhao are also battling lawsuits in Canada and from the FTX bankruptcy estate, with claims ranging from securities violations to fraudulent share deals.
Zhao’s legal troubles include a guilty plea for enabling money laundering through the exchange, resulting in a four-month prison sentence earlier in 2024. Despite his release in September, Binance’s regulatory and legal hurdles have raised concerns about its operations and compliance measures.

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