The US Supreme Court has declined to review a petition from Binance and its CEO, Changpeng “CZ” Zhao, allowing a class-action lawsuit to proceed. The suit, filed by investors, alleges Binance illegally sold unregistered tokens that significantly lost value. This decision underscores the growing scrutiny of Binance’s operations in the US and beyond.

The lawsuit, initially filed in April 2020 by investor Chase Williams, accuses Binance of functioning as an unregistered securities exchange. Despite Binance not having a physical presence in the US, a lower court ruled in March that US securities laws apply because transactions were conducted on US servers. Binance’s December appeal argued that technological advancements blur the lines between domestic and foreign markets, but the Supreme Court’s January 13 decision upheld the earlier ruling.

Legal troubles for Binance have compounded over time. In mid-2023, the US Securities and Exchange Commission (SEC) sued Binance and Zhao for allegedly selling unregistered securities and servicing US clients unlawfully. The platform later reached a staggering $4.3 billion settlement with the US Department of Justice in November 2023 for violations of money laundering and terrorism financing laws.

Beyond US borders, Binance has faced a class action in Canada for alleged securities law violations following its withdrawal from the country. Additionally, the FTX bankruptcy estate has launched a $1.8 billion lawsuit over a disputed 2021 share deal. Binance and CZ were also implicated in laundering stolen crypto in August 2024.

Complicating matters, Zhao served a four-month prison sentence in 2024 after admitting to enabling money laundering and failing to enforce proper Anti-Money Laundering measures. These escalating legal challenges have put Binance’s future under intense scrutiny, casting doubt on the exchange’s ability to weather the storm.