Judge blocks Binance from pushing class action suits over token sales into arbitration

A federal judge in Manhattan, Andrew L. Carter Jr., blocked Binance from compelling arbitration in a class action lawsuit alleging the exchange sold unregistered digital tokens to U.S. investors. The judge found that Binance failed to properly notify users when it added an arbitration clause and class action waiver to its Terms of Use in February 2019, as the plaintiffs established their accounts before this change when no such provisions existed. The court ruled that merely posting updated terms online without individualized notice was insufficient, citing precedent that users are not obligated to check for unilateral contract changes. Furthermore, the class action waiver section was deemed ambiguous and interpreted against Binance as the drafter. This ruling clears a major procedural hurdle for the plaintiffs in the case, which concerns pre-February 2019 conduct.

(Source：The Block)