Major crypto exchange Binance won the trial on Thursday.
A U.S. federal judge has dismissed a lawsuit accusing the exchange giant of violating U.S. securities laws by selling unregistered tokens and refusing to register as an exchange or broker-dealer, Reuters reported.
The judge said investors sued the exchange too late given they waited over a year after registering their purchases, he added.
In addition, Binance is not a local exchange, and even it uses US-based technology and Amazon’s computer service – according to the judge, domestic securities laws do not apply.
Binance, founded in 2017, is reportedly registered in the Cayman Islands.
According to the judge,
“Plaintiffs must plead not only that Plaintiffs purchased the tokens while in the US and that ownership of all or part of it has transferred to servers located in California that host the Binance website.”
Crypto investors involved in the lawsuit have filed this lawsuit against the world’s largest cryptocurrency exchange by trading volume, alleging that Binance “wrongly participated in millions of transactions” and that it failed to warn them of the “significant risks” of buying the nine tokens in question. They sought to return what they paid, the report says, citing a 327-page document.
These investors claim to have bought EOS, QSP, kyber network (KNC), tron (TRX), FUN, icon (ICX), OMG, LEND, and ELF on Binance since 2017, but these coins soon lost most of their its value. which led to the group’s decision to file a lawsuit.
Meanwhile, as previously reported, Binance has received a license from the Central Bank of Bahrain to operate as a crypto asset service provider in Bahrain, expanding its operations to the Arab states of the Persian Gulf. Also in March, Binance said it had received a virtual asset license from the Dubai Virtual Asset Regulatory Authority, allowing it to operate under the test-adapt-scale model of the Dubai virtual asset market as a basis for expansion in the region.
At 07:30 UTC, the fourth-largest crypto asset by market cap, BNB, was trading at $424. It fell almost 5% on the day, cutting its weekly gain to almost 2%.