Binance vs SEC Legal Saga
In the latest development of the legal battle between Binance Holdings and the U.S. Securities and Exchange Commission (SEC), the cryptocurrency exchange has reiterated its stance to dismiss the SEC lawsuit. Binance, along with its former CEO Changpeng Zhao (CZ), argued that the SEC’s reliance on a previous settlement with the U.S. Department of Justice (DOJ) and Financial Crimes Enforcement Network (FinCEN) is unwarranted and procedurally inappropriate in the current case. The ongoing dispute is playing out in the U.S. District Court for the District of Columbia.
Binance vs. SEC: A Legal Timeline
June 5, 2023: SEC Charges
– SEC files charges against Binance Holdings and its former CEO CZ.
– Allegations include 13 counts of securities law violations.
Nature of Charges: Customer Asset Control
– Accusations of controlling customer assets on Binance.US.
– Claims of commingling or diversion of customer funds.
SEC’s Claims against Binance
– Misrepresentation of trading controls on Binance.US.
– Operation of unregistered exchanges, broker-dealers, and clearing agencies.
– Dismissal of SEC’s attempt to incorporate $4.3 billion DOJ settlement.
– Claim that SEC failed to establish relevance of DOJ resolutions to asserted claims.
December 12, 2023: Binance’s Response
– Binance files court documents asserting SEC’s notice is procedurally flawed.
– Company contends SEC’s actions introduce new information and arguments without merit.
Related to Binance: Binance Visa Debit Card Services Cease in EEA on Dec 20
Binance asserts that the $56 million settlement doesn’t address the SEC’s specific allegations of violating securities laws by offering unregistered securities to U.S. investors. The cryptocurrency exchange argues that the SEC’s supplementary brief lacks new evidence. Meanwhile, attention is on Binance’s former CEO, Changpeng Zhao, who is in the U.S. and awaits sentencing in February 2024.
In the ongoing legal dispute between Binance and the U.S. SEC, the cryptocurrency exchange challenges the SEC’s reliance on a previous settlement with the DOJ and FinCEN, arguing it doesn’t address the specific charges. Binance maintains the SEC’s supplementary brief lacks new evidence. Meanwhile, the focus is on Changpeng Zhao, Binance’s former CEO, awaiting sentencing in the U.S. in February 2024.