Federal Court Rejects Binance's Attempt to Force Arbitration in U.S. Class Action, per The Moskowitz Law Firm

MIAMI, April 14, 2026 /PRNewswire/ -- According to The Moskowitz Law Firm, the federal judge in the Southern District of Florida has denied an attempt by Binance and its former CEO, Changpeng Zhao, to compel arbitration in a proposed class action alleging violations of U.S. securities laws.

In a detailed order, U.S. District Judge Roy K. Altman held that Binance and Zhao—neither of whom were signatories to the relevant arbitration agreement—could not enforce its terms against the plaintiffs. The Court found that the agreement applied only between the plaintiffs and certain U.S.-based Binance affiliates, which had already been voluntarily dismissed from the case.

As a result, the Court concluded there was no valid agreement allowing Binance or Zhao to require arbitration.

Binance and Zhao argued that the arbitration provision, which incorporates American Arbitration Association rules, delegated questions of arbitrability to an arbitrator. The Court rejected that argument, explaining that incorporation of those rules does not "clearly and unmistakably" delegate gateway arbitrability issues where the central question is whether a non-signatory can enforce the agreement at all.

The Court also declined to accept defendants' suggestion that plaintiffs had improperly dismissed the U.S. affiliates to avoid arbitration, finding no basis to disregard the corporate structure defendants themselves had established.

"We appreciate the Court's well-reasoned decision and look forward to moving forward on the merits," said Adam Moskowitz, managing partner of The Moskowitz Law Firm, which represents the plaintiffs alongside Boies Schiller Flexner LLP.

The case will now proceed in federal court.

SOURCE The Moskowitz Law Firm