Binance.US, the American branch of the leading cryptocurrency exchange Binance, is ready to take on the Securities and Exchange Commission (SEC) in court. In a recent X post, Binance.US expressed its eagerness for the SEC case to progress further following a Friday Court ruling.
“Notably, the SEC has yet to identify any evidence of wrongdoing on the part of Binance.US throughout the extensive, 11-month discovery process in which we have participated to date,” the company stated on X.
Judge’s Ruling on the Case
Last week, Federal Judge Amy Berman Jackson dismissed part of the SEC’s lawsuit against Binance.US while allowing some charges to proceed. The dismissed claims included the allegation that BNB is traded illegally on secondary markets and all sales related to the Binance USD (BUSD) stablecoin. The SEC’s claims concerning Binance’s “Simple Earn“ passive income feature were also dismissed.
The remaining charges include allegations against Binance’s staking scheme, the sale of BNB following its initial coin offering, and anti-fraud claims. Additionally, charges against Binance CEO Changpeng ‘CZ‘ Zhao as a “control person“ were upheld. The remaining charges focus on selling unregistered investment products and violating anti-fraud regulations.
On Friday, the Court decided that the SEC’s case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United…
— Binance.US ???????? (@BinanceUS) July 1, 2024
Binance.US responded to this decision, emphasizing its efforts to comply with regulations despite limited guidance from the SEC. The exchange criticized the SEC’s regulation-by-enforcement approach.
SEC Lawsuit Against Binance and CZ
In June 2023, the SEC charged Binance and its then-CEO Changpeng Zhao with selling unregistered investments, among other allegations. Like FTX, Binance was accused of mixing company and customer assets, misusing customer funds, and potentially manipulating the market with native tokens.
The SEC I requested an immediately verified accounting of Binance and Binance.US’s finances, freezing and repatriating Binance assets, document preservation, and appointing a receiver for Binance assets. Binance argued that these charges were aimed at grabbing headlines.
Besides the SEC, Binance faced challenges from the US Department of Justice (DOJ), leading to a leadership change. The DOJ accused the exchange of money laundering, bank fraud, and violating US sanctions laws, seeking a $4.3 billion settlement.
CZ pleaded guilty to the charges against him, stepped down as CEO, and served a four-month jail term.
More news: SEC Sues Silvergate Capital Over Misleading AML Claims and Risky FTX Transactions
