A United States appeals court has partially overturned a previous dismissal of a class-action lawsuit against Binance.US. The lawsuit accuses the cryptocurrency exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term of unlawfully manipulating the price of the HEX token.

A panel of three judges from the Ninth Circuit ruled on August 12 that the plaintiff, Ryan Cox, had presented valid claims against Binance.US and CoinMarketCap. The panel disagreed with a district court’s earlier dismissal, which had found that Cox failed to establish a sufficient connection between specific actions in Arizona and Binance.US.

Appeals Court Upholds Claims

Cox initially filed the class-action lawsuit in 2021. He alleged that Binance Capital Management and Binance.US had artificially restricted the HEX token’s ranking on CoinMarketCap. CoinMarketCap is a cryptocurrency price-tracking platform owned by Binance.

According to Cox, this manipulation caused HEX to trade at a lower price compared to Binance's own cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, which were ranked higher.

The district court dismissed the lawsuit in February 2023. The judge had concluded that Cox did not prove a concrete link between Binance.US’s activities and the alleged manipulation of HEX in Arizona.

However, the Ninth Circuit panel found that the district court's requirement for establishing "sufficient minimum contacts" between Binance.US and Arizona was incorrect. The appeals court stated that the district court had personal jurisdiction over the defendants because they had significant contacts with the broader United States.

U.S. court reopens HEX manipulation case against https://t.co/ryPvR1aYUC

A U.S. appeals court has rebooted a class-action lawsuit against https://t.co/ryPvR1aYUC regarding the HEX token manipulation case, Cointelegraph reported. https://t.co/ryPvR1aYUC was previously accused of…

— CoinNess Global (@CoinnessGL) August 13, 2024

HEX Token Value Plummets

The panel’s opinion noted that both Binance.US and CoinMarketCap have sufficient connections with the U.S. due to their incorporation or principal place of business within the country. This satisfies the due process requirements for personal jurisdiction.

The appeals court also determined that Cox's claims of price manipulation against Binance.US were valid. The case has been remanded for further legal proceedings.

The HEX token was launched in December 2019 by Richard Heart. On July 31, 2023, the SEC filed a lawsuit against Heart for violating federal securities laws and defrauding investors of at least $12.1 million. The SEC alleged that Heart used investor funds for personal luxury purchases, including a 555-carat diamond, expensive watches, and high-end cars.

Currently, the HEX token is trading at $0.004, a decline of over 99% from its all-time high of $0.51 in September 2021.