(Reuters) – A federal judge on Thursday rejected a lawsuit that accused Binance, the world’s largest cryptocurrency exchange by trading volume, of violating US securities laws by selling unregistered tokens and failing to register as a stockbroker or broker-dealer.
The mood had been aroused in Manhattan by digital token investors who had bought nine tokens – EOS, QSP, KNC, TRX, FUN, ICX, OMG, LEND and ELF – through Binance’s online exchange that began in 2017, and which soon lost much of its value.
In a 327-page complaint, investors claimed that Binance “incorrectly engaged in millions of transactions” and failed to warn them of the “significant risks”; of buying tokens, trying to get back what they paid.
However, U.S. District Judge Andrew Carter said investors were suing too late, after waiting more than a year for their purchases.
He also said that domestic securities laws did not apply because Binance was not a domestic stock exchange, even though it used Amazon’s computer servers and Ethereum blockchain computers in the United States.