A U.S. District Court has ruled that plaintiffs came too late to accuse cryptocurrency exchange Binance of illegally selling digital assets subject to securities laws.
U.S. District Judge Andrew Carter on Thursday dismissed the lawsuit against Binance. The users of the exchange who filed the lawsuit claimed that Binance “improperly conducted millions of transactions” and failed to warn them of the “significant risks” of investing in these cryptocurrencies. However, if you wish to learn more about trading go and visit bti.live
They wanted the exchange to compensate them for the financial losses they suffered due to investing in the crypto assets EOS, QSP, KNC, TRX, FUN, ICX, OMG, LEND, and ELF. The plaintiffs bought these crypto assets on Binance starting in 2017, but they soon fell in price significantly.
The lawsuit accused Binance of violating US securities laws by selling cryptocurrencies that are allegedly unregistered securities. Binance users said the trading platform was not registered as a securities exchange or broker-dealer with US regulators.
Lawsuit #20-02803 was filed in April 2020 in the US District Court for the Southern District of New York. In turn, Binance filed a motion to dismiss the case on behalf of CEO Changpeng Zhao. The court went to meet the site.
Judge Carter ruled that the plaintiffs sued Binance too late – more than a year had passed between the time they bought the crypto assets and the filing of the lawsuit. In addition, a federal judge said that US securities laws do not apply in this case because Binance is not a US exchange, even though it uses Amazon’s servers. More info on the Bitsoft360 platform
“Plaintiffs must plead not only that they bought the tokens while in the US, and that ownership transferred in whole or in part to servers located in California that host the Binance website,” the judge emphasized.
