Binance.US and the HEX Manipulation Case: A Turning Point in Crypto

The Future of Binance.US Amid Legal Challenges Like the HEX Manipulation Case

Three judges on the Ninth Circuit panel overturned a district court’s earlier decision to dismiss the class action lawsuit, ruling that Ryan Cox, the plaintiff, had legitimate claims against CoinMarketCap and Binance.US. Cox initially brought the class-action lawsuit in 2021, claiming that Binance Capital Management and Binance.US had rigged the rankings of HEX on CoinMarketCap, Binance’s cryptocurrency price-tracking website. As a result, according to Cox, Binance’s own coins were rated higher, and HEX traded at a lower price.

Court Ruling: Binance.US to Answer Charges in HEX Manipulation Case

In February 2023, the complaint was initially dismissed by a district court judge, who determined that Cox had not produced any hard evidence connecting specific actions in Arizona with Binance.US that would have connected Binance.US to HEX manipulation. The district court’s first ruling that Cox needed to demonstrate “sufficient minimum contacts” between Binance.US and Arizona, the state in which Cox initially filed the lawsuit, was rejected by the judges in an order dated August 12. Based on their extensive international contacts, the panel determined that the defendants in the lawsuit who are based in the US are subject to personal jurisdiction under US law by the district court.

Given that each company is incorporated or has a principal place of business in the United States, each has sufficient contacts with the United States to satisfy due process,

the opinion

The appeals court further concluded that Cox’s lawsuit against Binance.US included legitimate charges of pricing manipulation and noted that the case had been remanded for further judicial action.

Richard Heart and HEX Under Fire: SEC Files Lawsuit for Fraud and Misuse of Funds

In December 2019, Richard Heart, the app’s creator, released HEX. On July 31, 2023, the SEC filed a lawsuit against Heart for breaking federal securities laws and defrauding investors of at least $12.1 million in both the US and abroad. The SEC asserted that Heart utilized investor funds to finance personal luxury purchases, such as a 555-carat diamond, expensive watches, and high-end automobiles, rather than to develop or sell the HEX cryptocurrency.

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