|
Getting your Trinity Audio player ready...
|
- A US judge ruled Binance cannot apply its 2019 arbitration clause retroactively.
- The class action lawsuit will proceed in federal court.
- Bitcoin faces three major resistance levels near $70,000 amid five red months.
A U.S. federal judge has handed crypto exchange Binance a setback, ruling that it cannot force certain American investors into private arbitration over token losses tied to its global platform before February 2019. The decision keeps a closely watched class action in open court — a development that could shape how crypto firms enforce online contract updates.
At the same time, Bitcoin is battling a cluster of major resistance levels near $70,000, with analysts divided on whether March could mark a turning point for the broader market.
Judge Rejects Retroactive Arbitration Clause
In the case of Williams v. Binance, U.S. District Judge Andrew Carter Jr. ruled that Binance’s 2019 arbitration clause does not apply to claims that arose before it took effect on Feb. 20, 2019.
The court found that Binance updated its terms of service without directly notifying users and relied instead on posting revised terms online. The earlier 2017 version did not include arbitration or a class action waiver. Because the change was not clearly communicated, the judge concluded that customers were not bound by the newer provision for earlier activity.
The ruling also rejected Binance’s attempt to enforce a U.S. class action waiver embedded in a section heading, finding it too vague to hold up in federal court.
The lawsuit, brought by five U.S. investors, alleges that Binance and founder Changpeng Zhao sold unregistered securities and failed to register as a broker-dealer. While claims tied to activity after February 2019 have reportedly been dismissed, earlier claims will now proceed in federal court rather than private arbitration overseas.
The outcome could influence how crypto exchanges structure user agreements — especially when updating terms unilaterally.
Bitcoin Faces Triple Resistance Near $70K
Meanwhile, Bitcoin’s price action remains tense. After briefly touching $70,000, BTC was rejected and now hovers below a tight resistance cluster.
Three key barriers stand out on the weekly chart:
- The 200-week exponential moving average near $68,300
- The prior 2021 all-time high around $69,000
- The psychological $70,000 level
Also Read: CZ Returns to America: Can Binance Win Back the U.S. Market in 2026?
Bitcoin is down roughly 14% in February, marking its fifth consecutive red month — a rare bearish streak last seen in late 2018.
Some analysts argue that a decisive weekly close above the 200-week EMA could reignite bullish momentum. Others point to $74,500 as a crucial threshold that may signal the broader bear market has ended.
A Pivotal Moment for Crypto Markets
Together, the Binance ruling and Bitcoin’s technical standoff highlight a pivotal moment for the crypto sector. Legal scrutiny is intensifying just as markets test major inflection points. Whether in courtrooms or on price charts, the coming weeks could prove decisive for both industry regulation and investor sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
