SEC wants Binance guilt admission added to own case

Binance Holdings and its former CEO Changpeng Zhao have reacted to a move by the U.S. Securities and Exchange Commission (SEC). The SEC has filed to include Binance’s admission of guilt to the Department of Justice (DOJ) in its own legal proceedings.

In the filing submitted to the U.S. District Court for the District of Columbia, Binance insisted the SEC’s attempt to include the $4.3 billion guilty plea and settlement agreement with the DOJ in the continuing case was procedurally incorrect and should not be allowed.

The ongoing Binance-SEC legal case began on June 5, 2023, when the agency accused the company of 13 securities law violations, including that Zhao and Binance managed customer assets on Binance.US and mixed or redirected customer assets, as outlined in the charges.

The DOJ negotiated a separate settlement with Binance and its former CEO in November that resolved its probe into the company. The deal required Binance to pay $4 billion in penalties and allowed the company to continue operations while adhering to U.S. regulations.

Although not formally included in the settlement, the SEC contended that the federal court overseeing its case against the exchange should consider the statements and acknowledgments made by Binance and its ex-CEO, Changpeng Zhao, in the Nov. 21 settlement.

The SEC argued that the settlements demonstrate that Binance was well aware it was operating in the U.S., serving U.S. customers, and tapping into infrastructure within the U.S. for transactions. In reply, Binance asserted that the SEC did not show how the resolutions reached with the DOJ were pertinent to any of the SEC’s ‘faulty claims’ against Binance Holdings and Changpeng Zhao.

In court papers submitted on Dec. 12, 2023, Binance argued that the SEC notice does not substantiate the claims it asserted in the lawsuit from June 2023. It said:

Related: SEC serves suit to evasive Richard Heart in Finland, but not in person

The company added that presenting a judicial notice is not a substitute for amending a complaint. According to the company’s statement, the SEC’s attempt to leverage resolutions with other agencies indicates a lack of information regarding any pertinent regulatory authority on the part of the SEC.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

Source: Read Full Article