Binance has requested a US federal judge to compel all members of a class-action lawsuit claiming the exchange sold unregistered securities to arbitration. The exchange contends that the class group waived their ability to pursue collective legal action under its updated terms of service, which were modified in February 2019 to include a clause mandating arbitration for all claims and prohibiting class actions. A New York federal court previously agreed to arbitrate claims for users who traded between April 1, 2017, and February 20, 2019, but it partially paused the decision for claims from users beyond that date pending further clarification. Binance argues that its terms allow for amendments without individual notice to users. The case has seen various rulings, including a previous dismissal in March 2022 by Judge Andrew Carter, which was later overturned by the US Court of Appeals for the Second Circuit. The ongoing legal issues for Binance intensified after the SEC sued the exchange over securities violations in 2023.

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