A federal judge in Manhattan denied Binance’s motion to compel arbitration in a class action. The lawsuit alleges the exchange sold unregistered digital tokens to U.S. investors. The decision allows the case to proceed in open court rather than private arbitration.
Judge Andrew L. Carter Jr. ruled that Binance failed to properly notify users about changes to its Terms of Use. The exchange added an arbitration clause and class action waiver in February 2019. However, the plaintiffs created their accounts between September 2017 and April 2018.
The court found that posting updated terms online without direct notice was insufficient. The ruling cited precedent that users are not required to check for unilateral contract changes. As a result, the arbitration clause cannot apply to earlier claims.
The class action traces back to lawsuits filed in April 2020. The case was dismissed in 2022 but revived in 2024 by the Second Circuit. The appellate court held that U.S. securities laws could apply to Binance. The Supreme Court declined to review that ruling in January 2025.
Court Rejects Arbitration and Class Action Waiver
Binance argued that its 2019 terms governed all disputes. However, the court rejected that position. It stated that unilateral modifications silent on accrued claims face limits under California law.
The judge also addressed the class action waiver. Although a section referenced a “CLASS ACTION WAIVER,” the body did not define its terms. The court described the language as ambiguous. It interpreted the adhesion contract against Binance as the drafter.
The plaintiffs voluntarily dismissed claims arising after February 2019. This narrowed the case to conduct before the arbitration clause existed. Therefore, the dispute now focuses on earlier token sales. The ruling comes amid changes in Binance’s regulatory landscape. The SEC moved to dismiss its enforcement action last May. Meanwhile, the private class action continues.
Concurrently, Binance is also facing renewed political scrutiny in Washington. U.S. Senator Richard Blumenthal raised concerns about alleged exposure to $1.7 billion in transactions linked to Iran. However, as we reported, the crypto exchange has denied the claims and said it will share findings from an internal review with the U.S. Department of Justice.
BNB Price Prediction and Technical Outlook
Following the court decision, attention turned to the BNB price prediction. Market analysts note that BNB trades nearly 60% below its all time high within four months. The asset maintains a lower high and lower low structure.
Crypto analyst Crypto Patel stated that BNB remains inside a bearish flag channel. He noted that $570 acts as key support. If the price breaks below that level, he expects another decline toward $450.
He identified a breakdown target between $445 and $450. According to his analysis, no bullish divergence has appeared on major timeframes. Therefore, the bearish bias remains until the structure shifts.
Source: X
BNB price currently faces both legal and technical pressure. The court decision may not directly affect exchange operations. However, prolonged litigation could weigh on investor sentiment.
Traders now monitor whether support levels hold. A sustained move below $570 could confirm the bearish setup. Conversely, a structural shift would require higher highs and renewed demand. However, despite the challenges faced by Binance, the token has been in the green zone despite the current bearish trend in the market. At press time, the BNB price was trading at $617.27, a 1.07% surge from the 24 hour low.
Source: https://coinpaper.com/15052/bnb-price-prediction-as-us-court-rejects-binance-arbitration-clause
