In a recent development, a US appeals court has made a significant ruling in the case of a class-action lawsuit against Binance.US, the US subsidiary of the global Binance exchange. The lawsuit involves allegations of price manipulation of the Hex token by Binance.US and CoinMarketCap, another entity owned by Binance.
The plaintiff, Ryan Cox, initially filed the lawsuit in 2021, claiming that Binance Capital Management and Binance.US manipulated the ranking of the HEX cryptocurrency on CoinMarketCap. Cox alleged that HEX was the best-performing cryptocurrency of 2020 and that its value was unlawfully suppressed by the defendants for their financial gain. However, in February 2023, a district court judge dismissed the case, citing a lack of evidence of a direct connection between Binance.US’s activities and the jurisdiction where the case was filed.
The appeals court overturned the district court’s decision, stating that there was sufficient evidence to establish personal jurisdiction over the defendants. The court found that Binance.US had significant contacts with the United States, which satisfied due process requirements. Additionally, the court upheld Cox’s claims of price manipulation against Binance.US and remanded the case for further legal proceedings. This ruling opens the door for a more in-depth investigation into the allegations of misconduct by the defendants.
HEX is a digital asset created in 2019 by Richard Heart. The cryptocurrency has been at the center of various controversies since its launch and has been classified as a security token by the US Securities and Exchange Commission (SEC). Additionally, Heart has faced legal action for allegedly violating federal securities laws and defrauding investors of millions of dollars.
The decision of the US appeals court to reverse the dismissal of the class-action lawsuit against Binance.US marks a significant development in the legal battle over allegations of price manipulation in the cryptocurrency market. The ruling not only allows for further investigation into the claims made by the plaintiff but also underscores the importance of regulatory oversight in the burgeoning crypto industry. It remains to be seen what the outcome of this case will be and how it might shape future regulations and practices within the digital asset sector.
