In a recent development, a US appeals court has made a significant decision regarding a class-action lawsuit against Binance.US, the US subsidiary of the global Binance exchange. The court has partially overturned the dismissal of the case, signaling a possible shift in the legal proceedings.
The plaintiff, Ryan Cox, brought forth allegations against both Binance.US and CoinMarketCap, claiming that the crypto platforms engaged in price manipulation of the Hex token. Cox argued that these platforms unfairly suppressed the value of HEX for their own financial gains while artificially inflating the value of other cryptocurrencies.
Initially, the district court judge dismissed the case in February 2023, citing a lack of direct connection between Binance.US’s actions and the state of Arizona, where the lawsuit was filed. However, the appeals court disagreed with this ruling, asserting that the defendants had sufficient contacts within the US to warrant the court’s jurisdiction over the case.
The appeals court also upheld Cox’s claims of price manipulation against Binance.US, paving the way for further legal action. The court recognized the validity of the allegations and emphasized the need for a deeper examination of the situation to determine the extent of the wrongdoing.
Since its launch in 2019 by Richard Heart, HEX has been embroiled in various controversies, with the US Securities and Exchange Commission (SEC) even labeling it as a security token. Heart himself has faced legal challenges, including accusations of violating federal securities laws and defrauding investors of millions of dollars.
The recent decision by the US appeals court to partially overturn the dismissal of the class-action lawsuit against Binance.US marks a significant development in the ongoing legal battle. The court’s ruling underscores the importance of addressing allegations of price manipulation in the cryptocurrency industry, shedding light on the need for transparency and accountability among key players in the market. As the case moves forward, all eyes will be on how the proceedings unfold and what implications they may have for the broader crypto ecosystem.
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