Supreme Court Declines Binance's Appeal in Token Lawsuit

The U.S. Supreme Court refused to consider an appeal by Binance and its founder, Changpeng Zhao, to dismiss a lawsuit accusing the cryptocurrency exchange of selling unregistered tokens. The lawsuit, filed by investors, will proceed as a lower court ruled that U.S. securities laws apply.

The United States Supreme Court on Monday rejected Binance's attempt to avoid a lawsuit brought by investors. The plaintiffs accuse the leading cryptocurrency exchange and its founder, Changpeng Zhao, of illegally selling unregistered tokens that plummeted in value.

The Supreme Court's decision lets the lawsuit proceed after the 2nd U.S. Circuit Court of Appeals in Manhattan ruled in favor of applying U.S. securities laws. This decision hinges on the fact that token purchases were finalized in the United States after investors paid for them, despite Binance being a non-U.S. entity.

This legal battle underscores increasing scrutiny over cryptocurrency exchanges and their compliance with domestic securities regulations.

(With inputs from agencies.)