Binance Requests Dismissal of SEC Lawsuit
Binance, Binance.US, and CEO Changpeng “CZ” Zhao have officially requested the dismissal of the lawsuit filed against them by the United States Securities and Exchange Commission (SEC), according to a recent court filing. The filing argues that the SEC’s claims against Binance and Zhao lack legal merit. The SEC had filed a lawsuit on June 5, accusing Binance of operating unregistered exchanges, broker-dealers, and clearing agencies. However, Binance’s filing emphasizes that the SEC has not alleged any fraud or harm to investors by Binance or Zhao.
The SEC does not claim that Binance or Zhao committed any fraud or harmed a single investor.
Binance’s filing also questions the validity of the lawsuit and challenges the SEC’s definition of a security. It argues that if there is any doubt about the SEC’s interpretation of an “investment contract,” the doubt should be resolved against the SEC. Additionally, Binance disputes the classification of its token, BNB, as a security during its initial coin offering (ICO) period.
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Binance Faces Ongoing Challenges
In addition to its legal battles with the SEC, Binance continues to face other challenges. Binance argues that the accusations against it are “time-barred” because they relate to an offering that took place five years before the SEC initiated the case. It also asserts that only the US Congress has the authority to make policy decisions of such magnitude as requested by the SEC in its lawsuit. Furthermore, Binance recently experienced resignations from its legal and risk executives at Binance.US.
The head of legal and chief risk officer resigned on September 14, while the CEO of Binance.US left a day earlier. These departures have led to temporary replacements within the company.
Hot Take: Binance Fights Back Against SEC Lawsuit
Binance is taking a strong stance against the SEC lawsuit by requesting its dismissal. The company argues that the SEC’s claims lack legal merit and that investors have not been harmed. Binance also questions the validity of the lawsuit and challenges the SEC’s definition of a security. Despite these ongoing challenges, including resignations within the company, Binance continues to assert its position and fight back against the allegations brought by the SEC.
