Binance Theft Lawsuit Can Proceed In Federal Court, Appeals Panel Rules

A US appeals court has allowed a proposed Binance-related theft lawsuit to proceed in federal court, rejecting a lower-court order that had forced the plaintiffs into arbitration. 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. That is an important procedural ruling. It does not mean Binance has been found liable. It does not 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. TL;DR The Eleventh Circuit allowed eight alleged crypto theft victims to pursue claims in federal court. The panel found they were not bound by Binance’s arbitration terms because they never opened Binance accounts. The ruling is procedural and does not decide liability. Why Arbitration Was The Key Issue Many online platforms include arbitration clauses in their terms. Those clauses can require users to resolve disputes privately instead of suing in court. Compan...