Binance Bites Back and Accuses SEC of Misleading the Public in Securities Lawsuit

Binance has accused the SEC of misleading the public during its ongoing lawsuit. Here’s everything you need to know.

TL;DR

  • Binance accuses the SEC of misleading the public in the ongoing securities lawsuit, filing a motion in the U.S. District Court. They claim that the SEC made misleading statements in a press release on June 17th and demand adherence to the rules of conduct.
  • Binance refutes the SEC’s allegations of commingling and diversion of customer assets, stating that there is no evidence to support these claims. They argue that the SEC’s press release is causing confusion in the market and harming Binance.US customers.
  • The motion, if approved, could limit the SEC’s ability to make public comments during the lawsuit, particularly those that may impact court proceedings. The lawsuit alleges that Binance offered unregistered securities and failed to register as an exchange or broker-dealer clearing agency. The legal battle continues, with the outcome still isn’t clear.
Still from Binance SEC

Binance Accuses SEC of Misleading The Public

Binance vs SEC: The Battle Continues

The world’s largest crypto exchange, Binance, is fighting back and accusing the SEC of misleading the public in the ongoing securities lawsuit. Binance.US, along with its global counterpart Binance Holdings Limited and CEO Changpeng “CZ” Zhao, have filed a motion in the U.S. District Court for the District of Columbia. The motion claims that the SEC deliberately made misleading statements in a press release on June 17th.

According to the filings, the SEC’s assertions were deemed “misleading.” Therefore, the exchange is demanding that the financial watchdog adheres to the “applicable rules of conduct.” Specifically, they took issue with SEC Enforcement Director Gurbir Grewal’s claims that CZ and the exchange could “commingle customer assets or divert customer assets as they please.” Additionally, the SEC issued an order requiring all parties involved in the lawsuit to return to the United States.

However, Binance representatives strongly refuted these claims in the court filing. They stated that the SEC has no evidence of dissipation, commingling, or misuse of customer assets. They argued that the SEC designed their press release to introduce confusion into the market. This may have potentially caused harm to Binance.US customers instead of protecting them. The filing also raised concerns about the misleading descriptions of evidence that could taint the jury pool.

If approved by a federal judge, the motion could restrict the SEC’s ability to make public comments about the ongoing lawsuit during the case’s duration. This is regarding comments that could significantly impact court proceedings. To support their argument, Binance’s legal team included excerpts from a June 13th hearing where SEC counsel admitted there was no proof of Binance.US assets being funneled overseas.

Still from Twitter

SEC Admits No Proof of Funnelling Overseas

The Saga Continues

This motion is part of the SEC’s broader lawsuit, which was initiated on June 5th against Binance, Binance.US, and CZ. The SEC accuses them of offering unregistered securities and failing to register as an exchange or broker-dealer clearing agency. SEC Chair Gary Gensler alleged that CZ and Binance deceived investors regarding the strength of their risk controls. Also, the regulator is seeking disgorgement and other penalties.

Initially, the SEC attempted to freeze all Binance.US assets. However, they reached a compromise that permits only the exchange’s employees to access client funds during the lawsuit. The legal battle between Binance and the SEC continues, with both sides vehemently defending their positions. Only time will tell how the court will rule and what impact it will have on the future of Binance and the crypto industry as a whole.

Related posts