US appeals court revives HEX token manipulation case against Binance.US, reversing previous dismissal.
Lawsuit claims Binance.US manipulated HEX token ranking on CoinMarketCap, causing price drop.
Court finds sufficient US ties to hold Binance.US accountable for alleged HEX manipulation.
A U.S. appeals court has revived a class-action lawsuit accusing Binance.US and CoinMarketCap of manipulating the price of HEX token. The ruling overturned a previous dismissal, allowing the case to proceed. In a way, this decision breathes new life into a class-action lawsuit initially filed by Ryan Cox, who claims that the cryptocurrency exchange and its data platform, CoinMarketCap, unlawfully manipulated the ranking and price of HEX.
On August 12, a three-judge panel from the Ninth Circuit Court of Appeals reversed an earlier ruling by a district court. The district court had dismissed Cox’s claims in February 2023, citing insufficient proof of a connection between Binance.US’s actions in Arizona and the alleged HEX manipulation. The district court had ruled that Cox failed to establish a sufficient link between the exchange’s activities and the state of Arizona.
The appeals court, however, rejected this requirement. It asserted that the district court did have jurisdiction over the defendants due to their extensive ties to the United States. This jurisdictional issue was key in the reversal, as the appeals court found the defendants’ U.S. connections sufficient to satisfy legal due process.
The lawsuit, which began in 2021, centers on claims that Binance Capital Management and Binance.US manipulated HEX’s ranking on CoinMarketCap. According to Cox, this manipulation caused HEX to trade at a lower price, favoring Binance’s own cryptocurrencies by ranking them higher on the platform. The Ninth Circuit panel found that these claims held merit, thereby remanding the case for further legal proceedings.
This decision could have broader implications, setting a precedent for how similar cases involving cryptocurrency exchanges and price manipulation are handled. The revival of the lawsuit increases scrutiny on Binance.US’s practices, especially its influence on the crypto market through platforms like CoinMarketCap.
At press time, the HEX token was trading at $0.004, a steep decline from its all-time high of $0.51 in September 2021. The token’s sharp drop in value has been a focal point in this legal battle, especially as HEX’s founder, Richard Heart, faces separate legal charges. The SEC recently sued Heart, accusing him of defrauding investors and misappropriating funds.
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