- The lawsuit claims that the price of the HEX token was manipulated.
- The plaintiff, Ryan Cox, first filed the complaint in 2021.
A class-action lawsuit against Binance US, has been revived by an appeals court in the US. The lawsuit, which had been partly reinstated after being dismissed earlier, claims that the price of the HEX token was manipulated.
A class action lawsuit against Binance US was largely reversed by the United States Ninth Circuit Court of Appeals. The court’s decision on August 12 breathed fresh life into the action. Which focused on alleged price manipulation of the HEX token.
The plaintiff, Ryan Cox, first filed the complaint in 2021. And claims that CoinMarketCap and the cryptocurrency exchange illegally manipulated the price of the HEX token. According to Cox, these organizations manipulated CoinMarketCap, a website that tracks cryptocurrency values and is owned by Binance. As a result, HEX was trading at lower rates than Binance’s cryptocurrencies.
Viable Claim of Price Manipulation
Moreover, after the district court rejected Cox’s case, a three-judge panel reversed, finding that Cox had not shown enough proof linking certain acts in Arizona to Binance US. Due to their incorporation or major location of business inside the nation, both parties have important relationships with the greater United States, as mentioned.
According to the panel’s ruling, Cox has a viable claim of price manipulation against Binance US. Since these ties meet the due process criteria for personal jurisdiction. Therefore, further judicial actions will be initiated in the remanded case.
This decision is made in the face of mounting criticism of the HEX token and Richard Heart, the man behind it. Separately, on July 31, 2023, the SEC sued Heart, claiming that the company had deceived investors out of at least $12.1 million and violated federal securities laws.
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