A federal judge has dismissed a class-action lawsuit that claimed cryptocurrency exchange Binance violated United States securities law by failing to register as a stockbroker or to trade and sell cryptocurrency tokens that were not registered with the Securities and Exchange Commission. from the United States.
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Now, the judge ruled that the national law did not apply to Binance as it was not a stock exchange and the case was filed too late. The complaint came from a group of investors who claimed to have invested in EOS, BNT, SNT, QSP, KNC, TRX, FUN, ICX, OMG, LEND tokens, among others. The investors claimed that the tokens had lost a considerable part of their value since their purchase and demanded compensation for the price paid for the tokens and the fees paid to Binance in connection with their purchase.
Binance and the Issuers have illegally conducted millions of transactions, including the solicitation, offer and sale of securities without registering tokens as securities and without registering Binance with the SEC as a broker or broker. As a result, investors were not informed of the significant risks associated with these investments, as required by federal and state securities laws, the lawsuit states.
Investors further claimed that Binance capitalized on the hype generated by cryptocurrencies by launching tokens and initial coin offerings on behalf of the projects and benefited from the associated transaction fees, adding that they bought the tokens with a reasonable expectation of profit.
In his decision the judge was negative for the complainants because the investors had waited more than a year to file a complaint after buying the tokens, they filed a lawsuit too late. Most of the tokens were purchased in 2018 and the original request was not made until April 2020.