Binance Crypto Theft Lawsuit Can Proceed in Federal Court: Appeals Panel Rules

A US appeals court has allowed eight alleged crypto theft victims to pursue their claims in federal court against Binance, rejecting an order that had forced them into arbitration.

The Eleventh Circuit issued a writ of mandamus on August 19, directing the lower court to vacate its arbitration order. The panel found that the plaintiffs had never opened Binance accounts and therefore were not bound by the exchange's Terms of Use.

This procedural ruling does not mean Binance has been found liable or guilty of any wrongdoing. It simply allows the plaintiffs to pursue their case in federal court rather than being forced into arbitration, which could limit the potential for class-action lawsuits.