The U.S. Supreme Court turned away on Monday a bid by Binance and founder Changpeng Zhao to avoid a lawsuit by investors who accused the world's largest cryptocurrency exchange of illegally selling unregistered tokens that lost much of their value.

Binance faces a setback as the U.S. Supreme Court denies its appeal, impacting BNB’s price and market sentiment.

The U.S. Supreme Court declined to hear Changpeng Zhao and Binance’s appeal against a 2nd Circuit decision. Binance submitted that United States securities laws did not apply to the company since its headquarters were not within the county. The 2nd Circuit Court ruled in March 2024 that Binance token sales were subject to domestic laws.

The US Supreme Court Monday denied Binance Holdings Ltd.'s petition for review of a decision allowing a proposed class action to proceed against it for operating an unregistered securities exchange.

The court’s decision allows a class-action lawsuit to proceed, finding that US securities laws apply despite Binance’s foreign operations.