U.S. court denies Binance bid to force arbitration
A federal judge in New York has denied Binance’s attempt to compel arbitration in a class action accusing the exchange of selling unregistered digital tokens to U.S. investors.
The U.S. District Court for the Southern District of New York found Binance failed to adequately notify users when it added an arbitration clause and class action waiver to its Terms of Use in 2019. Because the plaintiffs opened accounts in 2017–2018, the court ruled the provisions cannot apply retroactively.
The judge also held that the class action waiver is unenforceable due to ambiguous language. The case now proceeds on claims tied to conduct before Feb. 20, 2019.
Binance founder Changpeng Zhao, who pleaded guilty to federal crimes in 2023, was pardoned by Donald Trump in October 2025. Binance said it will vigorously defend the remaining claims.
A federal judge in New York has denied Binance’s attempt to compel arbitration in a class action accusing the exchange of selling unregistered digital tokens to U.S. investors.
The U.S. District Court for the Southern District of New York found Binance failed to adequately notify users when it added an arbitration clause and class action waiver to its Terms of Use in 2019. Because the plaintiffs opened accounts in 2017–2018, the court ruled the provisions cannot apply retroactively.
The judge also held that the class action waiver is unenforceable due to ambiguous language. The case now proceeds on claims tied to conduct before Feb. 20, 2019.
Binance founder Changpeng Zhao, who pleaded guilty to federal crimes in 2023, was pardoned by Donald Trump in October 2025. Binance said it will vigorously defend the remaining claims.