A recent court filing revealed that a US appeals court has partially overturned the dismissal of a class-action lawsuit against Binance.US, the United States subsidiary of the global Binance exchange. The plaintiff, Ryan Cox, brought forth allegations against both Binance.US and CoinMarketCap regarding the manipulation of the Hex token’s price.
In 2021, Cox initiated the class-action lawsuit, accusing Binance Capital Management and Binance.US of manipulating HEX’s ranking on CoinMarketCap, a digital asset price-tracking platform owned by Binance. The plaintiff claimed that HEX was the best-performing cryptocurrency in 2020 and alleged that its value was unlawfully suppressed by the defendants for their own financial gain.
Appellate Court Decision
Initially, the case was dismissed by a district court judge in February 2023, citing that Cox had not demonstrated a direct connection between Binance.US’s activities and Arizona, where the case was filed. However, the appeals court reversed this decision, asserting that the district court had personal jurisdiction over the defendants due to their substantial presence in the US.
The appeals court upheld Cox’s claims of price manipulation against Binance.US and directed the case to proceed further with legal action. The ruling underscored that the complaint contained valid price manipulation allegations against the US defendants, leading to the reversal of the district court’s dismissal of the claims under the Act against those defendants.
About HEX and Richard Heart
HEX is a digital asset launched in 2019 by Richard Heart and has been embroiled in several controversies since its inception. Additionally, the US Securities and Exchange Commission (SEC) has classified HEX as a security token, and Heart has faced legal action for violating federal securities laws and defrauding investors of a substantial amount.
The partial reversal of the class-action lawsuit against Binance.US signifies a significant development in the legal battle surrounding the alleged manipulation of the Hex token’s price. With the appeals court acknowledging the validity of Cox’s claims and ordering further legal proceedings, the outcome of this case could have far-reaching implications for the crypto industry as a whole.
Leave a Reply