US Appeals Court Blocks Binance Arbitration Bid in Crypto Theft Case

A US appeals court has blocked Binance's attempt to force eight cryptocurrency theft victims into arbitration. The claimants, who never agreed to Binance's terms of use, will be allowed to pursue their proposed class actions against the exchange and its affiliates.

The ruling comes after a lengthy legal battle that spanned over 3,000 miles from Washington state to Florida. The claimants allege that Binance operated an unlicensed money-transfer business and failed to comply with obligations under federal law, allowing stolen cryptocurrency to be laundered through the exchange.

Binance sought to compel arbitration, citing equitable estoppel, which can bind non-signatories to an arbitration clause. However, the appeals court sided with the claimants, holding that their claims did not depend on Binance's terms of use.