The US Supreme Court has decided that a class action lawsuit against Binance will move forward. This lawsuit was filed by former investors who claim the exchange sold unregistered tokens illegally.

Binance argued that the lawsuit shouldn't proceed because the US lacks jurisdiction. However, the Supreme Court disagreed with this point.

As one of the top cryptocurrency exchanges in the world, Binance is currently facing several legal challenges. In the UK, the company is dealing with allegations of wrongfully firing an employee who reported misconduct. But the class action in question comes from consumers in the US.

The lawsuit claims that Binance failed to inform users about the significant risks tied to investing in certain low-cap tokens. Reports suggest that Binance believes these accusations are baseless and that US securities laws don’t apply since the exchange is not based in the US. Still, the Supreme Court has taken a different view.

In its petition, Binance stated, “Recent innovations in technology have empowered investors to participate in foreign financial markets with greater ease and efficiency. This interconnectivity has increased both the size of the market for trades and the number of Americans trading on foreign exchanges.”

Changpeng “CZ” Zhao, the former CEO of Binance, was a key supporter of this Supreme Court appeal. Although he no longer represents the company, he remains invested in the outcome, having been jailed on related charges nearly a year ago.

The Supreme Court's ruling could have major implications for Binance. Federal regulators in the US have already pursued various criminal charges against the exchange. However, this appeal focuses on a civil matter. Former users who bought ELF, EOS, FUN, ICX, OMG, QSP, or TRX after 2017 can join this class action lawsuit.

Even though the US government has shown a more favorable stance toward cryptocurrency, that doesn’t necessarily influence the courts. Last month, the Supreme Court also allowed a shareholder lawsuit against Nvidia to proceed, which is similar to the situation with Binance.

With the green light given to those shareholders, Binance's chances in this lawsuit don’t look good. Plus, since this is a civil case, it seems unlikely that there will be any leniency from the upcoming President Trump.