Court Opens Door for Crypto Users to Sue Binance Over Stolen Funds
A federal appeals court has ruled that crypto theft victims can sue Binance in US courts, rejecting the exchange's attempt to push their claims into arbitration under terms they never signed.
The Eleventh Circuit granted a writ of mandamus on Wednesday, a rare remedy that forces a lower court to correct a clear error. The panel directed a Florida district court to vacate its arbitration order.
Court Says Victims Can Sue Binance Without Signing Its Terms
Eight theft victims filed proposed class actions against Binance Holdings, BAM Trading Services, which operates Binance.US, and founder Changpeng Zhao. None of them ever held a Binance account or accepted its Terms of Use.
They allege criminals drained their wallets, then laundered the proceeds through the exchange. The complaints cite the Racketeer Influenced and Corrupt Organizations (RICO) Act, conversion, and consumer protection laws in California and Massachusetts.
The plaintiffs say Binance ran an unlicensed money transfer business and disregarded the Bank Secrecy Act. That US law requires financial firms to detect and report suspicious transactions.
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