In simpler terms, the U.S. Supreme Court has chosen not to intervene in an appeal filed by Binance, a cryptocurrency exchange, and its CEO, Changpeng “CZ” Zhao, concerning a lawsuit brought forth by investors claiming they lost money due to the illegal sale of unregistered tokens on the platform.
On January 13th, the U.S. Supreme Court chose not to consider an appeal challenging a lower court decision that U.S. securities regulations apply to a cryptocurrency exchange, despite the fact that the exchange does not maintain a traditional office within the United States.
In March, a lower court decided that the legal case could move forward as the token purchases were completed within the U.S., and the transactions occurred on American servers, even though Binance isn’t based in the United States.
In December, Binance filed an appeal, asking a higher court to reconsider the lower court’s ruling. They argued that advancements in technology now make it simpler for investors to access foreign financial markets and engage in trades with increased ease and efficiency. This global interconnectivity also allows Americans to trade on overseas exchanges.
In April 2020, Chase Williams initiated a class action lawsuit, acting on behalf of investors who claimed that Binance illegally traded securities without being registered as a securities exchange or broker-dealer. The progression of this case can now move forward following the Supreme Court’s decision on January 13th.
Since mid-2023, the legal issues between Binance and its former CEO, Zhao, have intensified in the United States. The Securities and Exchange Commission filed a lawsuit against them, alleging that they sold unregistered securities and illegally catered to American citizens without proper registration.
In November 2023, Binance agreed to a $4.3 billion fine with the United States Department of Justice, following allegations that they broke anti-money laundering and counter-terrorist financing regulations.
In April, Binance faced a class-action lawsuit in Canada, as accusations arose that they breached securities regulations. This came shortly after their announcement of leaving the Canadian market in May 2023.
In simpler terms, the legal representative managing the FTX bankruptcy proceedings has filed a lawsuit against Binance and its CEO Changpeng Zhao, seeking approximately $1.8 billion. The reason for this lawsuit is an accusation that they engaged in a “deceptive” or “fraudulent” share transaction back in 2021.
In August 2024, CZ and Binance faced a separate lawsuit, which accused them of laundering stolen cryptocurrency.
In April, Zhao was given a four-month jail term following his admission of guilt for facilitating money laundering activities at the exchange and neglecting to establish adequate Anti-Money Laundering protocols. His release occurred in late September.
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2025-01-14 07:04