As a seasoned researcher with years of immersion in the dynamic world of cryptocurrencies and blockchain technology, I find myself closely following the intriguing saga between Binance.US and Ryan Cox, centered around the HEX token. This legal battle, which has taken yet another turn, is reminiscent of a rollercoaster ride that leaves spectators breathless.
As an analyst, I’ve been following the developing story regarding my ongoing legal dispute with Binance.US and Ryan Cox, centered around accusations of market manipulation involving the HEX token. Notably, the US Court of Appeals for the Ninth Circuit has recently reinstated this case. The claim alleges that both Binance.US and its parent company, Binance Capital Management, have been manipulating the price and ranking of HEX on CoinMarketCap.
Background of the Case
The case was originally brought forward by Cox in 2021. He alleged that Binance.US and the global exchange deliberately suppressed the ranking of the HEX token on CoinMarketCap, resulting in a lower market value for HEX.
Based on Cox’s assertion, this manipulation seems to have favored Binance’s own cryptocurrencies, causing them to be rated higher within their platform. He believes that this biased treatment towards HEX negatively affected investors, potentially resulting in substantial financial losses.
The legal matter persisted until February 2023, when a district court discarded the claim against Binance.US. At that point, the court decided that Cox hadn’t provided enough evidence proving a direct link between Binance.US’s actions and activities happening in Arizona, where the lawsuit was initiated. Since there wasn’t enough proof of Binance.US’s connection to activities within Arizona, the court found no reason to assert jurisdiction over the company at that time.
Appeals Court Reverses the Decision
On August 12, 2024, the US Court of Appeals for the Ninth Circuit reversed the initial dismissal made by the district court. This decision was made by a panel of three judges who determined that the lower court had mistakenly demanded Binance.US to prove a strong connection with Arizona before proceeding with the case.
Instead, the appellate court concluded that the lower court possesses territorial jurisdiction over Binance.US, as the company, in conjunction with CoinMarketCap, conducts substantial business activities across the U.S. as a collective entity.
The higher court pointed out that Binance.US and CoinMarketCap maintain significant business connections throughout the U.S., which places them under the court’s authority. This decision enables Cox to continue with his lawsuit, strengthening his allegations of market manipulation against Binance.US.
Following the renewal of the lawsuit against Binance.US, the court case is set to move forward in the district court.
As events unfold, all relevant parties – including industry professionals, regulatory bodies, and the wider cryptocurrency community – will keep a close eye on it. The resolution of this case might serve as a blueprint for similar legal disputes concerning exchange platforms and allegations of market manipulation in the future.
The ongoing lawsuit against Binance.US is yet another obstacle, among several regulatory and legal issues, that the company must navigate within the U.S. market.
The Troubled History of the HEX Token
Despite the revival of the case, the HEX token itself has been fraught with issues.
Introduced in December 2019 by Richard Heart, the digital asset known as HEX, has found itself embroiled in debates. At one point, it was worth as much as $0.51 in September 2021. However, since then, its value has dropped dramatically, now hovering around $0.004 – a decrease of more than 99% from its highest point.
In July 2023, Heart faced additional difficulties when the United States Securities and Exchange Commission (SEC) filed a lawsuit against them. The accusation was that they had broken federal securities laws and deceived investors out of approximately $12.1 million. The SEC claimed that instead of using investor funds for the advancement or advertising of the HEX token, Heart had been spending it on personal luxury items.
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2024-08-13 15:01