A United States appeals court has partially reversed the dismissal of a class-action lawsuit against Binance.US that alleged the exchange and CoinMarketCap illegally manipulated the price of its HEX token.

A three-judge panel in the Ninth Circuit reversed the district court’s dismissal of the class action, finding that plaintiff Ryan Cox had asserted meritorious claims against Binance.US and CoinMarketCap.

Cox filed his class-action lawsuit in 2021, claiming that Binance Capital Management and Binance.US artificially restricted HEX’s ranking on CoinMarketCap, a cryptocurrency price tracking platform owned by Binance.

Cox suggested that this caused HEX to trade at a lower price and Binance’s own cryptocurrencies to rank higher.

A district court judge dismissed the case in February 2023, finding that Cox failed to establish concrete connections to specific Arizona activity that would link Binance.US to the manipulation of HEX.

In its August 12 opinion, the arbitrators disagreed with the district court’s original conclusion that Cox must establish “sufficient minimum contacts” between Binance.US and Arizona before a court could establish personal jurisdiction.

The panel held that the district court had personal jurisdiction over the U.S.-based defendants in the case because the defendants had sufficient contact with the United States.

“Since each company is established or headquartered in the United States, each has sufficient contact with the United States and this satisfies the right to a fair trial,” the opinion said.

Personal jurisdiction refers to a court’s authority to make formal decisions about the rights and obligations of defendants; In this case, the defendants are Binance.US and CoinMarketCap.

Additionally, the appeals court noted that Cox’s lawsuit alleges justified price manipulation allegations against Binance.US, and those cases were remanded for ongoing legal proceedings.

HEX was released by creator Richard Heart in December 2019.

On July 31, 2023, the SEC filed charges against Heart for violating federal securities laws and defrauding investors of “at least” $12.1 million.

The SEC alleged that Heart used investor funds for personal luxury purchases, including “a 555-carat diamond, expensive watches, and high-end automobiles,” rather than developing or promoting the HEX token.

The HEX token is currently trading at $0.004, down more than 99% from its all-time high of $0.51 reached in September 2021.