Stephanie Douse 
A federal judge dismissed a case alleging Binance of breaching US securities laws by selling unregistered tokens and failing to register as an exchange or broker-dealer
Binance Wins Dismissal Of Crypto Token Class Action
On Thursday, a federal judge dismissed a case alleging Binance, the world’s largest cryptocurrency exchange by trading volume, of breaching US securities laws by selling unregistered tokens and failing to register as an exchange or broker-dealer.
The complaint was filed in Manhattan by digital token investors who purchased nine tokens – EOS, QSP, KNC, TRX, FUN, ICX, OMG, LEND, and ELF – through Binance’s online exchange beginning in 2017, only to see their value plummet.
The investors said in a 327-page case that the world’s largest cryptocurrency exchange “wrongfully engaged in millions of transactions” and failed to notify them about the “severe risks” of purchasing the tokens, and sought to retrieve their investment.
Reason For Binance Victory
However, U.S. District Judge Andrew Carter ruled that the investors filed their lawsuit too late, having waited more than a year after their purchases.
He further claimed that domestic securities rules did not apply to the world’s largest cryptocurrency exchange since it was not a local exchange, despite the fact that it used Amazon computer servers and Ethereum blockchain computers in the US.
“Plaintiffs must allege more than stating that plaintiffs bought tokens while located in the US and that title passed in whole or in part over servers located in California that host Binance’s website,” Carter wrote.
Kyle Roche, a Roche Freedman investor’s lawyer, declined to comment. Binance and its lawyers did not reply promptly to demands for comment.
The investors claimed that the statute of limitations began running one year before their April 2020 lawsuit, when the Securities and Exchange Commission issued a “framework” classifying their tokens as securities.
The world’s largest cryptocurrency exchange business structure is opaque, with a holding company domiciled in the Cayman Islands.
The world’s largest cryptocurrency exchange founder and CEO, Changpeng Zhao, stated in October that the company intended to construct “a few headquarters” throughout the world. more info
Anderson et al v Binance et al, No. 20-02803 in the United States District Court for the Southern District of New York.