SEC Lawsuit Update on Binance and ConsenSys
Recent developments in the SEC lawsuit against Binance and ConsenSys
SEC Lawsuit Update
Amy Berman Jackson, a judge at the US District Court for the District of Columbia, ruled that most of the SECโs lawsuit against Binance and its co-founder could proceed.
The SEC accused Binance and Zhao of mishandling customer funds, misleading investors and regulators, and violating securities regulations.
In response, Binance contested the claims and requested the case to be dismissed, arguing that the SEC was attempting to expand its jurisdiction globally.
- Ten out of 13 counts will proceed in full, according to Judge Jackson.
- One count related to sales of BUSD, Binance’s defunct stablecoin, was dismissed due to regulatory actions.
- A part of a count concerning secondary sales of BNB token was also dismissed.
- Allegations about Binanceโs Simple Earn program were partially dismissed.
This lawsuit is distinct from the $4.3 billion penalty Binance faced for violations of anti-money laundering and sanctions laws in November 2023.
ConsenSys Response
ConsenSys, an Ethereum software solutions provider, responded to the SEC’s accusations on June 28.
ConsenSys criticized the SECโs regulatory overreach and its attempt to redefine legal standards.
- The SEC accused ConsenSys of selling unregistered securities through its MetaMask staking service.
Conclusion
The legal battles between regulatory authorities like the SEC and major crypto companies like Binance and ConsenSys continue, highlighting the ongoing challenges faced by the industry.
It remains to be seen how these lawsuits will impact the broader crypto market and regulatory landscape moving forward.
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