BNB’s price falters as U.S Supreme Court denies Binance’s appeal – Details

The U.S Supreme Court has turned down an appeal by Binance to overturn a class action lawsuit against the exchange
Court’s decision fueled a price decline for BNB, which led to $1.9M in long liquidations

The U.S Supreme Court has denied an appeal filed by exchange giant Binance, with the same arguing that it is not subject to U.S securities laws as it does not have a physical headquarters in the country.

The denied appeal dealt a major blow to Binance Coin (BNB), which fell to a multi-week low of $660 before bouncing back to trade at $687 at press time.

Details of the case

This petition stemmed from a class action lawsuit that was filed against Binance in 2020. At the time, investors claimed that the exchange offered securities without being registered as a brokerage platform under U.S laws.

Binance denied these claims, arguing that it is not a U.S company and not subject to U.S regulations. In March 2022, Binance won the case and U.S District Judge Andrew Carter dismissed the lawsuit.

However, in March last year, this lawsuit was revived by the Manhattan Appeals Court. It ruled that despite Binance not having its headquarters in the U.S, it is still subject to securities laws because U.S investors bought tokens from the exchange through U.S servers.