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Binance faces ongoing SEC claims as a U.S. court rejects dismissal of key charges. Some claims are dismissed, impacting future crypto litigations.
A United States court has not been persuaded by cryptocurrency exchange Binance to reject most of the allegations leveled against it by the securities regulator of the nation. Judge Amy Berman Jackson decided on June 28 that allegations pertaining to Binance’s staking scheme, the sale of BNB after its initial coin offer, and anti-fraud offenses will go forward.
Main Arguments to Move Forward
Along with the argument that Binance was compelled to register under the Exchange Act, the court’s ruling also permits the claim that former Binance CEO Changpeng “CZ” behaved as a “control person” to continue. For the Securities and Exchange Commission (SEC), the result was not quite ideal however. All the claims regarding secondary market sales of BNB and all the sales connected with the Binance USD (BUSD) stablecoin were dismissed by Judge Jackson. Regarding the decision to dismiss the BNB secondary market sales argument of the SEC, she relied on Judge Analisa Torres’s conclusion in the SEC’s action against Ripple. For the securities regulator, finance attorney Scott Johnsson said this is a “big loss.”
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Upcoming Court Hearing
Jackson set a July 9 court date. Under Gary Gensler’s direction, the SEC sued Binance in June 2023 alleging it operated unlawfully in the United States and issued unregistered securities. Approximately 3 months later, Binance and CZ sought to have the SEC action thrown out on the grounds that the particular agency exceeded its legal authority. Seven of the US states: Alaska, Florida, Maine, North Carolina have either suspended or did not allow Binance to renew its money transmitter license. CZ is now on a four-month imprisonment sentence for the violation of regulations on money laundering.
Thus, Binance, which counts more than 200 million users and manages over $ 100 billion, remains the largest cryptocurrency exchange to this date, although it faces legal issues on an ongoing basis.
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