US Judge Denies Binance's Arbitration Request, Users Can Sue in Court Over Pre-2019 Tokens Claim

BlockBeats News, February 27th, according to Reuters, U.S. District Judge Andrew Carter in Manhattan rejected Binance's request, denying the exchange's demand to arbitrate claims that it illegally sold unregistered securities and caused massive losses to customers.

Manhattan U.S. District Judge Andrew Carter stated that customers could sue in court over claims arising before February 20, 2019, because Binance failed to adequately notify users of changes to its terms of service requiring dispute resolution through arbitration and waiving their right to sue collectively.

A Binance spokesperson, in response to Judge Carter's ruling, said: "Binance will vigorously defend the remaining limited claims in this case, as they are without merit." Customers claiming losses from seven tokens - ELF, EOS, FUN, ICX, OMG, QSP, and TRX - allege that Binance failed to warn of the "significant risks" of purchasing and seek to recover funds already paid.