Binance US Wins Bid to Send Crypto User’s Suit to Arbitration

Binance’s US unit convinced a federal court to send to arbitration a proposed class action brought by a user who claimed the cryptocurrency exchange violated federal regulations.

Jeffrey Lockhart bought over $437,000 in TerraUSD, or UST, on Binance.US, court filings said. He sued the exchange after UST crashed in May 2022 and essentially lost all of its value. Lockhart alleged the exchange failed to disclose that UST is a security.

Binance.US’s arbitration agreement included a clause stating an arbitrator, rather than a court, must decide whether user claims must be arbitrated. The clause is enforceable, Judge Jacqueline Scott Corley in ...