Plead To Dismiss SEC Allegations
The latest developments show that the SEC has opposed Binance’s motion to dismiss the ongoing lawsuit between the two parties. John Reed Stark, a former SEC enforcement officer, has highlighted recent changes on social media platforms. In September, Binance and its CEO, Changpeng “CZ” Zhao, submitted court documents in an attempt to dismiss the U.S. Securities and Exchange Commission’s allegations against them.
The SEC suffered a setback in September when it was unable to obtain permission to investigate the software used by Binance.US. Since filing a lawsuit against the American exchange, its foreign partner Binance Holdings, and Changpeng Zhao in June, the SEC has been unable to get information from Binance.US.
Binance maintains that BUSD was not provided as an investment contract because there is no chance of profit, while the SEC alleges that Binance advertised and sold BUSD as an investment contract with a value anticipated to stay at $1. The SEC further stated that the Binance defendants relied on the Ripple finding to keep buyers from knowing whether the money they paid went to Ripple or any other seller of XRP.
Hot Take: Legal Standoff Between SEC and Binance
The legal battle between the SEC and Binance is intensifying as both parties stand their ground. With recent developments showing opposition from the SEC against Binance’s motion to dismiss, it seems like this showdown is far from over. It remains to be seen how this legal tussle will unfold and what impact it will have on the crypto industry as a whole.
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