In a recent court filing, a US appeals court made the decision to partially overturn the dismissal of a class-action lawsuit against Binance.US, the US arm of the global Binance exchange. The plaintiff, Ryan Cox, was found to have valid claims against both Binance.US and CoinMarketCap for allegedly manipulating the price of the Hex token. Cox accused the crypto platforms of unfairly influencing HEX’s ranking on CoinMarketCap, claiming it to be the best-performing cryptocurrency of 2020.
Initially, the class-action lawsuit was dismissed by a district court judge in February 2023, citing a lack of evidence of a direct connection between Binance.US’s activities and the state of Arizona where the case was filed. However, the appeals court disagreed with this decision, stating that the defendants had significant contacts within the US and therefore fell under the jurisdiction of the court. The court upheld Cox’s claims of price manipulation against Binance.US, sending the case back for further legal proceedings.
The Hex token, launched in 2019 by Richard Heart, has been embroiled in various controversies since its inception. Labeled a security token by the US Securities and Exchange Commission (SEC), HEX has faced scrutiny for its practices. Heart himself has been accused of violating federal securities laws and defrauding investors of millions of dollars.
The US appeals court’s decision to partially overturn the dismissal of the class-action lawsuit against Binance.US has significant implications for the crypto industry as a whole. It underscores the importance of transparency and fair practices within the space. The ruling also serves as a warning to other crypto platforms that engaging in market manipulation will not be tolerated.
The legal battle between Ryan Cox and Binance.US is far from over. With the case now back in the courts, the outcome remains uncertain. However, one thing is clear – the crypto industry is facing increasing scrutiny and regulation, and platforms must adhere to the highest standards of ethics and compliance to avoid legal repercussions.
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