Binance.US Prepares for Legal Battle with SEC
Key Takeaways from the Article:
- Court Upholds SEC Charges: A U.S. judge upheld most SEC charges against Binance.US, including offering unregistered securities and anti-fraud violations. Legal proceedings are ongoing.
- Binance.US Asserts Compliance: Binance.US claims it has complied with regulations and criticizes the SEC’s enforcement methods, stating no evidence of wrongdoing was found during the 11-month discovery.
- Legal Risks for Zhao: The lawsuit presents risks for Changpeng Zhao, including financial penalties and jail time, and increases regulatory scrutiny on Binance’s U.S. operations.
YEREVAN (CoinChapter.com) — Binance.US, the American branch of the world’s largest cryptocurrency exchange, is set for the next phase of its legal dispute with the Securities and Exchange Commission. Binance.US announced on social media that it is “prepared” for the court ruling, which allows the SEC’s case to continue.
Binance.US Responds to SEC Court Ruling. Source: @BinanceUS
A U.S. federal judge ruled on Friday, upholding most of the SEC’s charges against Binance.US while dismissing part of the lawsuit against Binance and its founder, Changpeng Zhao. The remaining charges involve potentially offering unregistered investment products and violating anti-fraud provisions.
In a post on X, Binance.US noted,
“The SEC has yet to identify any evidence of wrongdoing on the part of Binance.US throughout the extensive, 11-month discovery process in which we have participated to date.”
Binance.US Criticizes SEC’s Enforcement Tactics Amid Ongoing Legal Battle
Binance.US highlighted its commitment to compliance, stating,
“It is unfortunate that we, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach and politically motivated overreach under its current leadership.”
The SEC sued Binance, Binance.US, and Zhao in June 2023, with Zhao currently serving jail time due to charges from the Department of Justice.
Changpeng Zhao Lawsuit Key Information
Changpeng Zhao (CZ), founder and CEO of Binance, faces a lawsuit from the Securities and Exchange Commission (SEC) filed in June 2023. The SEC alleges that Binance and its U.S. affiliate, Binance.US, engaged in offering unregistered securities and failed to register as a securities exchange.
Main Allegations
- Offering unregistered securities.
- Misleading investors about compliance controls.
- Deceptive practices to attract and retain users.
Implications
- Legal risks for CZ, including financial penalties.
- Potential for increased regulatory scrutiny on Binance.
- Disruptions to Binance.US operations.
Current Status
- A federal judge has upheld most SEC charges against Binance.US.
- Key parts of the lawsuit against CZ and Binance remain under judicial review.
- The case is ongoing, with further discovery and legal proceedings expected.
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