Binance and Changpeng Zhao seek court dismissal of SEC lawsuit

Binance and CEO Seek Dismissal of SEC Lawsuit

Binance, the popular cryptocurrency exchange, and its CEO Changpeng Zhao (CZ) have jointly filed a motion to dismiss the lawsuit brought against them by the U.S. Securities and Exchange Commission (SEC). The motion argues that the SEC has overstepped its authority.

SEC Accused of Exceeding Authority

In a statement submitted to the U.S. District Court on September 21, Binance and Zhao claimed that the SEC failed to provide clear guidance for regulating the crypto industry, leading to retroactive enforcement actions. They believe the SEC is misinterpreting securities laws and applying them incorrectly to cryptocurrencies.

Binance.US Also Seeks Dismissal

In addition to Binance and Zhao’s motion, Binance’s U.S. arm, Binance.US, reportedly filed a separate 56-page motion seeking dismissal of the charges on the same day.

Legal Troubles for Binance

The SEC filed 13 charges against CZ and Binance on June 5, accusing them of fraud and manipulation. The regulator also alleges that Zhao and Binance controlled all operations of their U.S. subsidiary without proper disclosure. This action follows a similar lawsuit by the Commodity Futures Trading Commission (CFTC) against Binance for violating registration requirements and rules.

Hot Take: Binance Fights Back Against SEC Allegations

Binance and its CEO are fighting back against the SEC’s allegations, claiming that the regulator has gone beyond its powers in regulating cryptocurrencies. They argue that the SEC’s lack of clear guidance has resulted in retroactive enforcement actions, imposing liability on past transactions. With both Binance and its U.S. arm seeking dismissal of the charges, it remains to be seen how the court will rule on this high-profile case. The outcome could have significant implications for the future regulation of the crypto industry in the United States.