US Judge Rejects Binance's Request to Arbitrate Customer Claims

A US federal judge has rejected Binance's request to arbitrate customer claims related to crypto losses, allowing customers to pursue their claims in court.

The decision comes after allegations emerged that Binance sold unregistered tokens that lost significant value, violating federal and state securities laws. The ruling notes that Binance failed to sufficiently notify its customers of changes to its terms of use, including an arbitration provision.

Binance had requested that the court dismiss the claims, arguing that customers had agreed to arbitrate disputes through a class-action waiver in 2019. However, the judge ruled that this provision was ambiguous and unenforceable, allowing customers to pursue their claims in court.