In a recent development, a US appeals court has partially overturned the dismissal of a class-action lawsuit against Binance.US, the United States subsidiary of the global Binance exchange. This ruling came after the plaintiff, Ryan Cox, brought forward valid claims against both Binance.US and CoinMarketCap for allegedly manipulating the price of the Hex token. Cox accused the crypto platforms of unfairly impacting HEX’s ranking on CoinMarketCap, a popular digital asset price-tracking platform owned by Binance.
The lawsuit, initiated by Cox in 2021, targeted Binance Capital Management and Binance.US for their alleged manipulation of HEX’s performance in 2020. Cox asserted that HEX was the best-performing cryptocurrency during that time and that the defendants deliberately suppressed its value while inflating the value of other cryptocurrencies for personal gain. Despite an initial dismissal of the case by a district court judge in February 2023, the appeals court found that there was indeed a basis for further legal action. The court’s decision rested on the defendants’ significant presence in the US, granting the district court personal jurisdiction over them.
The appeals court not only upheld Cox’s claims of price manipulation against Binance.US but also indicated that there were sufficient grounds to proceed with the case. The ruling highlighted the complaint’s validity regarding the alleged price manipulation by the US defendants. As a result, the case was sent back for additional legal proceedings to address the accusations brought forward by Cox and his legal team.
HEX, a digital asset launched in 2019 by Richard Heart, has been the center of various controversies since its inception. The token has been classified as a security token by the US Securities and Exchange Commission (SEC), leading to legal challenges for Heart. In addition, Heart has faced allegations of violating federal securities laws and defrauding investors of a substantial amount, totaling at least $12.1 million.
The appeals court’s decision to partially overturn the dismissal of the class-action lawsuit against Binance.US signifies a significant development in the legal battle surrounding the alleged price manipulation of the Hex token. The ruling paves the way for further legal proceedings and underscores the importance of addressing claims related to cryptocurrency manipulation in the digital asset market.
