Binance, one of the world’s largest cryptocurrency exchanges, has lodged a complaint against the United States Securities and Exchange Commission (SEC). The complaint stems from a press release issued by the SEC, alleging that Binance.US, the US-based arm of Binance, and its CEO, Chanpeng “CZ” Zhao, violated federal securities law by misleading customers and misusing their assets.
Judge Amy Berman Jackson, presiding over the SEC’s case against Binance.US, has dismissed the claims, asserting that it is not the court’s role to nitpick public statements made by either party.
“It is not apparent that court intervention is needed at this time, or that it is necessary or appropriate for the Court to get involved in wordsmithing the parties’ press releases,” stated Judge Jackson.
She further added that the SEC’s public relations efforts thus far are unlikely to significantly impact the proceedings of the case.
Binance’s Legal Standpoint
Represented by BAM Trading lawyers, Binance.US has filed a complaint against the SEC’s press release, citing it as a “misleading extrajudicial statement.” The company contends that the SEC’s press release seems designed to create unnecessary confusion in the market, potentially harming Binance.US customers instead of protecting them.
They argue, “It also risks tainting the jury pool with misleading descriptions of the evidence concerning the Defendants.”
Binance’s legal team maintains that there is no evidence to suggest that customers’ assets have been dissipated, commingled, or misused in any way.
The court has set September 21 as the deadline for Binance to respond to the SEC’s allegations, while the SEC’s response is expected by November 7 in response to Binance’s plea.
Binance’s Battle Against the SEC
This court complaint from Binance comes as the exchange prepares to confront the SEC in a legal battle. The SEC has garnered criticism for its perceived negative impact on the cryptocurrency landscape in the US, as it has pursued legal action against several major exchanges. The outcome of the ongoing developments and their effects on the market remain pivotal and eagerly awaited.