US Judge Blocks Binance From Forcing Arbitration in Investor Lawsuit

[AIcash]

A federal judge in New York has ruled that Binance cannot compel a group of US investors to arbitrate claims tied to crypto token purchases made before Feb. 20, 2019. District Judge Andrew Carter Jr. determined that Binance’s 2019 arbitration clause does not apply retroactively, allowing a major class action lawsuit to proceed in open court instead of private arbitration.

The court found that Binance failed to provide sufficient notice when it updated its terms of service in 2019. While the exchange relied on a general change-of-terms clause and posted updates online, there was no evidence users were individually notified about the addition of arbitration or class action waivers. The decision reinforces that traditional contract law still governs digital platforms, regardless of how decentralized they claim to be.

[nihalsari]

turns out “decentralized” doesn’t mean “immune to contract law” who knew