Binance Tells US Court: ’Read the Fine Print’ as It Moves to Kill Class Action

Binance fires back at US plaintiffs with a classic corporate play—the arbitration clause buried in user terms. The crypto giant’s legal team insists disputes belong in private mediation, not public courts. Another win for boilerplate legalese over consumer rights.

Legal experts eye the move as a test case for crypto’s accountability end-run. When your business model depends on ’agree without reading,’ expect more fine-print warfare. Meanwhile, retail traders keep clicking ’accept’—because who reads terms before chasing 100x leverage?

Binance Seeks Dismissal Based on Arbitration Clause

On March 28, U.S. District Judge Andrew L. Carter Jr. ruled that Binance could not force arbitration for users who purchased tokens between April 1, 2017, and February 20, 2019, prior to the implementation of its amended terms of use.

For users who bought tokens after that date but before receiving actual notice of the arbitration clause, the judge also denied Binance’s motion, but without prejudice.

He then vacated that decision on April 16, allowing both parties to file additional briefs on the issue.

In its motion to dismiss, Binance argues that its user agreement includes a binding arbitration clause and a class action waiver, which requires disputes to be resolved privately rather than in court.

The clause, the company claims, was clearly disclosed and agreed to by users at the time of account registration.

“Each Plaintiff agreed to resolve any disputes through binding arbitration governed by the rules of the Hong Kong International Arbitration Centre,” Binance’s legal team stated in the filing.

The exchange further emphasized that the plaintiffs’ claims fall squarely within the scope of the arbitration clause.

“Plaintiffs who accepted the 2019 terms agreed to arbitrate all claims arising on or after Feb. 20, 2019,” Binance said. It also claimed that its earlier terms already allowed unilateral amendments without notifying individual users, suggesting those users should be bound retroactively.

Global Legal Heat Continues as Arbitration Strategy Comes Under Scrutiny

This legal dispute stems from a broader class action initially dismissed in 2022, when Judge Carter sided with Binance’s argument that it was not subject to U.S. securities laws due to its offshore status.

That decision was overturned in March 2024 by the Second Circuit Court of Appeals, and the Supreme Court declined to hear Binance’s appeal in January.

Beyond this case, Binance continues to face mounting legal pressures globally. In the U.S., it settled with regulators in November 2023 for $4.3 billion over allegations of selling unregistered securities and failing to maintain proper compliance controls.

Former Binance CEO CZ’s Guilty Plea Accepted by US Judge@cz_binance, former CEO of @Binance known as CZ, had his guilty plea accepted by a U.S. judge in a case involving anti-money laundering regulations.#CryptoNewshttps://t.co/Pe1gZxNIt8

Founder Changpeng Zhao pleaded guilty to a related criminal charge and agreed to a $150 million personal settlement, while Binance paid $2.7 billion to the Commodity Futures Trading Commission (CFTC).

Cryptocurrency exchange Binance has been slapped with a new class-action lawsuit in Canada following allegations of security law violations. #Binance #BinanceCanadahttps://t.co/2583C2gfqP

Binance’s legal troubles have also spread to Canada, where a class action lawsuit was filed in April 2024 over alleged securities law violations following its exit from the market in 2023.