CoinDesk reported that a group of investors aiming to sue Binance, former CEO Changpeng Zhao, and other executives has received a fresh opportunity following an appeals court's reversal of a lower court ruling that dismissed the case. The Second Circuit Court of Appeals, on Friday, declared that the class action lawsuit against the world's largest crypto exchange, initially filed in April 2020, should not have been dismissed by a federal judge in the Southern District of New York. The investors allege they purchased securities from Binance, including EOS, TRX, ELF, FUN, ICX, OMG, and QSP tokens.

The appeals court's decision overturned the dismissal, affirming that the plaintiffs had "plausibly alleged" that transactions involving the assets occurred on U.S. servers, and they accessed Binance from the U.S. Moreover, the ruling questioned Binance's assertions of lacking a headquarters or physical location. While the ruling does not conclusively determine the tokens' classification as securities, it allows the case to proceed. In the upcoming proceedings at the district court, the parties will have the opportunity to argue the classification of the tokens.

Plaintiffs' attorney Jordan Goldstein, a partner at Selendy Gay, expressed satisfaction, stating, "On behalf of investors who traded on Binance, we are pleased that a Second Circuit panel has unanimously acknowledged the strength of our claims and permitted this action to proceed. We look forward to prosecuting this class action against Binance and its founder Changpeng Zhao."

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