The US Court of Appeals has revived the HEX manipulation case against Binance.US with its latest decision.
A lawsuit alleging manipulation of the price of the HEX token by Binance.US and CoinMarketCap was previously dismissed, but the US Court of Appeals has partially overturned the dismissal, Cointelegraph reported.
The court also stated in its ruling that plaintiff Ryan Cox had meritorious claims against Binance.US and CoinMarketCap.
US Court of Appeals Overturns HEX Decision!
The lawsuit, first filed in 2021 by plaintiff Ryan Cox, accused cryptocurrency exchange Binance.US and CoinMarketCap of illegally manipulating the price and ranking of the HEX token.
Cox claimed that the manipulation caused HEX to trade at a lower price, while Binance’s own cryptocurrency was ranked higher.
A district court judge initially dismissed the case in February 2023, citing a lack of specific evidence of price manipulation.
However, the Court of Appeals overturned the dismissal of the class action lawsuit, stating that the claims against Binance.US and CoinMarketCap were credible.
The lawsuit against Binance.US is back on the agenda, and the legal process will continue in the district court.
For Binance.US, the revival of this lawsuit adds to the growing list of regulatory and legal challenges the company is facing in the United States.
Problems Facing HEX Token!
Apart from the lawsuit filed by Ryan Cox, the HEX token was also the subject of another lawsuit filed by the SEC.
Accordingly, the SEC has sued HEX token founder Richard Heart for allegedly violating federal securities laws and defrauding investors of at least $12.1 million.
The SEC accused Heart of misusing investor funds for personal luxury purchases rather than the development or promotion of the HEX token.
*Not investment advice