U.S. judge rejects Binance arbitration request, users can file lawsuits in court for claims on certain tokens

According to Reuters, U.S. District Judge Andrew Carter in Manhattan dismissed Binance's request, rejecting the demand to resolve claims from customers who accused the trading platform of illegally selling unregistered tokens and causing significant losses through arbitration.

Judge Andrew Carter of the Manhattan U.S. District Court stated that customers could file lawsuits in court for claims arising up to February 20, 2019, because Binance failed to adequately notify users that it had modified its terms of use, requiring disputes to be resolved through arbitration and waiving the right to sue collectively.

A Binance spokesperson, in response to Judge Carter's ruling, stated, "Binance will vigorously defend the remaining limited claims in this case, which are baseless." Customers who suffered losses due to the seven tokens ELF, EOS, FUN, ICX, OMG, QSP, and TRX accused Binance of failing to warn about the "significant risks" associated with purchases as required by federal and state securities laws, and are seeking to recover the amounts paid.