Judge Blocks Binance Bid to Force US Crypto Claims into Arbitration

A United States federal judge has ruled against Binance in its attempt to compel a group of US customers to resolve their claims through arbitration. The lawsuit concerns losses incurred on crypto tokens purchased on Binance’s global platform prior to February 20, 2019. Judge Andrew Carter Jr. determined that the customers were not adequately informed about the 2019 arbitration clause when Binance unilaterally updated its terms of use from the 2017 version, which lacked such provisions. The judge found that Binance’s methods of notifying users – a general change-of-terms clause and posting updated terms online – were insufficient, as there was no evidence of individual notice or formal announcement of the new arbitration provision.

The case, *Williams v. Binance*, is a class action lawsuit brought by five US investors alleging that Binance and its founder, Changpeng Zhao (CZ), illegally sold unregistered securities and failed to register as a broker-dealer. The case was initially dismissed in 2022 but revived by the Second Circuit in 2024. Binance maintains that claims arising after February 20, 2019, have already been dismissed and intends to “vigorously defend” the remaining claims. The remaining claims will now be litigated in federal court, allowing judges to determine whether crypto platforms can enforce unilaterally updated online terms to limit investor lawsuits.

(Source：Cointelegraph)