Appeals Court Allows Crypto Theft Victims to Sue Binance in Open Court
A federal appeals court has cleared the way for eight alleged victims of cryptocurrency theft to sue Binance in open court. The US Court of Appeals for the Eleventh Circuit granted a writ of mandamus on August 19, overturning a lower court order that had forced the claimants into arbitration with Binance.
The claimants never signed up for a Binance account or agreed to its terms, yet a Florida judge compelled arbitration anyway. The lawsuit accuses Binance Holdings, BAM Trading Services, and founder Changpeng Zhao of RICO violations, consumer protection breaches, and running an unlicensed money-transfer operation.
The appellate panel found the district court had 'misread the complaints' and ruled the case will now proceed as litigation rather than arbitration. The decision is significant because it means that Binance cannot automatically drag theft victims into arbitration simply because a complaint mentions fees or account terms.