Supreme Court Allows Class Action Against Binance

The US Supreme Court has decided that a class action lawsuit against Binance, accusing the cryptocurrency exchange of illegally selling unregistered tokens, will proceed. This decision upholds a lower court ruling which stated that US securities laws can apply to Binance because transactions were finalized in the US. Investors argue that Binance failed to warn them of the risks associated with certain tokens, which subsequently lost value. Binance, founded in China, contested the applicability of US securities laws, citing their extraterritorial limits as outlined in the Morrison v National Australia Bank decision. Despite these arguments, the Supreme Court declined to hear Binance's appeal, allowing the lawsuit to move forward. Binance is also facing other legal challenges, including accusations of misconduct and involvement in a 'fraudulent' share deal with FTX.