Binance Theft Lawsuit Clears Federal Court Hurdle

A US appeals court has allowed a proposed Binance-related theft lawsuit to proceed in federal court. The Eleventh Circuit issued an extraordinary writ of mandamus on August 19, directing the lower court to vacate its arbitration order.

The panel found that the eight alleged crypto theft victims had never opened Binance accounts and therefore were not bound by Binance’s Terms of Use.

This is a procedural ruling, which means it does not mean Binance has been found liable or prove RICO or anti-money-laundering allegations. It only determines that the plaintiffs can pursue the case in federal court rather than being forced into arbitration.