U.S. District Judge Andrew L. Carter Jr. denied Binance’s motion to compel arbitration in a proposed class action over token sales on Binance.com, keeping the dispute in federal court under an Opinion & Order.
The court found plaintiffs opened accounts in 2017 to 2018 under Binance’s 2017 Terms of Use, which did not include arbitration, choice of law, or a class action waiver. Binance later posted 2019 Terms adding a Singapore-seated arbitration clause, but the judge held that claims accruing before Feb. 20, 2019 were not bound because users lacked sufficient notice of the terms change; alternatively, the order said the 2019 language did not clearly define any temporal limits, blocking retroactive application. The court also ruled the purported class action waiver unenforceable due to unclear drafting.
With arbitration denied, Binance’s bid to shift U.S. claims into a private forum loses near-term traction, while the court granted Binance’s request to seal certain arbitration-motion exhibits and a certificate of service. Next, stakeholders will watch for any appeal posture and how the parties sequence upcoming procedural milestones.
Source: U.S. District Court, Southern District of New York (Opinion & Order, Doc. 164).
Disclaimer: Crypto Economy Flash News are based on verified public and official sources. Their purpose is to provide fast, factual updates about relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.
