Binance Files New Submission in Legal Dispute with SEC
In the ongoing legal battle between Binance Holdings and the U.S. Securities and Exchange Commission (SEC), Binance has submitted a new filing to the U.S. District Court for the District of Columbia. The company, along with its former CEO Changpeng Zhao (CZ), argues that the SEC’s reliance on its prior settlement with the U.S. Department of Justice (DOJ) and Financial Crimes Enforcement Network (FinCEN) is inappropriate and without merit in the current case.
Binance Dismisses DOJ Settlement as Irrelevant to Security Violations
Since June 5, 2023, Binance Holdings and its former CEO CZ have been embroiled in a legal dispute with the SEC. The agency has accused the exchange of 13 securities law violations, including claims that Zhao and the company controlled customer assets on Binance.US and engaged in the commingling or diversion of funds. Binance argues that the SEC’s attempt to incorporate the outcomes of its settlement with the DOJ is procedurally improper and irrelevant to the current case.
Binance Challenges SEC’s Reliance on Recent Settlement
Binance also asserts that the settlement agreement with the DOJ and FinCEN does not apply to the charges brought by the SEC. The settlement, which involved paying $56 million in penalties, did not adequately address the SEC’s allegations of unregistered securities offerings to U.S. investors. Binance further contends that the SEC’s supplementary brief fails to introduce new evidence. The focus remains on Changpeng Zhao, who is currently in the U.S. awaiting sentencing in February 2024.
Hot Take: Binance Stands Firm Against SEC’s Allegations
In its latest submission to the court, Binance continues to dispute the SEC’s claims and the relevance of the DOJ settlement. The legal battle between Binance and the SEC intensifies as both sides present their arguments. The outcome of this case will have significant implications for the cryptocurrency industry and regulatory oversight. As the proceedings unfold, all eyes are on Changpeng Zhao, whose fate hangs in the balance as he awaits his sentencing next year.
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