A U.S. Court of Appeals has reignited a class-action lawsuit against Binance.US, accusing the exchange of unlawfully manipulating the price of the HEX (HEX) token. The Ninth Circuit Court reversed a previous decision by a district court that had dismissed the case, ruling that the plaintiff, Ryan Cox, had presented credible claims against both Binance.US and CoinMarketCap, a cryptocurrency price-tracking site owned by Binance.
Cox initially filed the lawsuit in 2021, alleging that Binance Capital Management and Binance.US intentionally lowered HEX’s ranking on CoinMarketCap, which led to the token trading at a suppressed price. Meanwhile, Binance’s own cryptocurrencies allegedly enjoyed higher rankings. The district court had previously dismissed the lawsuit in February 2023, citing insufficient evidence linking Binance.US to specific activities in Arizona, where the lawsuit was filed.
However, the appeals court disagreed, stating that the district court has jurisdiction over the case because Binance.US and CoinMarketCap have sufficient ties to the U.S. The court emphasized that both companies are either incorporated in the U.S. or have a principal place of business there, which fulfills the requirements for due process.
The appeals court also acknowledged that Cox’s claims of price manipulation were valid and warranted further legal proceedings. This decision marks a significant setback for Binance.US as the lawsuit now returns to court for additional litigation.
The controversy surrounding HEX has escalated in recent months. Richard Heart, the creator of HEX, was sued by the SEC on July 31, 2023, for allegedly defrauding investors out of over $12 million. The SEC accused Heart of misusing investor funds for luxury purchases instead of developing or marketing the HEX token. Since its peak at $0.51 in September 2021, HEX has plummeted over 99%, currently trading at just $0.004.
Contact us ontelegramfor media partnerships and for ourNFTwhitelist.