SEC Lawsuit Against Binance and CZ Moves Forward
The U.S. Securities and Exchange Commission (SEC) lawsuit against Binance and its co-founder Changpeng Zhao (CZ) is moving forward following a recent ruling.
A judge in the U.S. District Court for the District of Columbia allowed 10 out of 13 counts in the SEC lawsuit to proceed.
Judge Amy Berman Jackson ruled that the majority of the SEC’s claims could continue in full, while two counts were allowed to proceed partially. This lawsuit, initiated last year, follows a plea deal Binance made with other regulatory bodies, including the Financial Crimes Enforcement Network (FinCEN) and the Department of Justice (DOJ), resulting in a $4.3 billion fine. The SEC has used details from these plea deals to support its case.
The SEC’s allegations against Binance and CZ involve mishandling customer funds, misleading investors and regulators, and violating securities laws. Binance and CZ have been seeking to have these claims dismissed.
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The judge dismissed one count related to the sale of the stablecoin Binance USD (BUSD). Last year, BUSD faced regulatory action, leading Paxos, Binance’s BUSD issuing partner, to stop minting the stablecoin in February. Binance announced it would phase out support for BUSD by December 2023. The judge also dismissed parts of a claim concerning the secondary sale of Binance’s native token, BNB, and part of a claim regarding Binance’s Simple Earn program, which allows users to earn interest by lending tokens.
The SEC’s lawsuit against Binance is part of a broader effort to classify cryptocurrencies as securities under its jurisdiction, a move that has been criticized by many in the crypto industry and Congress as regulatory overreach. In another recent action, the SEC sued Consensys, alleging that its MetaMask wallet and associated features violate securities laws.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
