In a recent court filing on August 12, a US appeals court made a significant decision to partially overturn the dismissal of a class-action lawsuit against Binance.US, the US subsidiary of the global Binance exchange. The plaintiff, Ryan Cox, had brought forward allegations against both Binance.US and CoinMarketCap regarding the manipulation of the price of the Hex token. Cox claimed that the defendants unlawfully suppressed the value of HEX for their financial benefit while inflating the value of other cryptocurrencies.
Initially, in February 2023, a district court judge dismissed the case based on the lack of a direct connection between Binance.US’s activities and the state of Arizona where the case was filed. However, the appeals court overturned this decision, stating that the district court had personal jurisdiction over the defendants due to their significant presence in the US. The court found valid claims of price manipulation against Binance.US and sent the case back for further legal action.
This ruling has significant implications for the future of regulatory oversight in the cryptocurrency industry. It highlights the importance of transparency and accountability among major players like Binance.US and CoinMarketCap. The court’s decision to uphold claims of price manipulation against Binance.US sets a precedent for stricter enforcement of regulations in the digital asset space.
The HEX token, launched in 2019 by Richard Heart, has been a subject of controversy since its inception. The US Securities and Exchange Commission (SEC) has labeled it as a security token, and Heart himself has faced legal troubles for violating federal securities laws and defrauding investors. The recent court ruling against Binance.US adds to the list of legal challenges surrounding the HEX token and its affiliated entities.
The partial reversal of the dismissal of the class-action lawsuit against Binance.US serves as a reminder of the regulatory challenges faced by the cryptocurrency industry. It underscores the need for greater scrutiny and accountability in the market to protect investors and ensure fair practices. This ruling sets a precedent for addressing price manipulation claims and holding major players accountable for their actions in the digital asset space.