A New York judge rejected Binance's request to transfer claims from U.S. crypto investors to arbitration.

U.S. District Judge Andrew Carter Jr. of the Southern District of New York ruled that Binance cannot force a group of U.S. customers to arbitrate claims for losses incurred from purchases of crypto tokens on its global platform prior to February 20, 2019. The class-action lawsuit will continue to be heard in open court. The judge held that Binance's 2019 arbitration clause does not apply to these claims because Binance failed to provide adequate notice to users when unilaterally amending the 2017 version of its Terms of Service, and the 2017 version did not contain any arbitration or class-action exemption clauses. The judge noted that Binance relied solely on general terms changes and the posting of the updated 2019 terms on its website, and there is no evidence that the exchange provided any personal notices or formal announcements to users. The judge also ruled that the 2019 arbitration clause cannot be retroactively applied to claims prior to its effective date. The case, Williams v. Binance, was filed by five U.S. investors from California, Nevada, and Texas, accusing Binance and its founder CZ of illegally selling unregistered securities and operating as an unregistered broker-dealer. Binance responded that all claims arising on or after February 20, 2019, have been voluntarily withdrawn by the plaintiff, and Binance will actively defend against the remaining claims. (Cointelegraph)