Binance Fails to Dismiss Majority of SEC Charges, Continues Operations Amid Legal Troubles
Summary:
Binance, a leading cryptocurrency exchange, has been unable to get the majority of charges brought by a US securities regulator dismissed. Charges proceeding include allegations related to Binance’s staking program, the sale of BNB after its initial coin offering, and anti-fraud violations. Some claims, including related to BNB secondary market operations and dealings with the Binance USD stablecoin, were dismissed. The SEC sued Binance in 2023 for allegedly marketing unregistered securities. Despite legal issues, Binance continues to manage over $100 billion in assets with 200 million users.
In a recent feud with the United States judiciary, crypto marketplace Binance has been unsuccessful in getting the majority of charges brought by the country's securities supervisor dismissed. The case will still contain allegations associated with Binance's staking scheme, the BNB (BNB) transaction after its initial coin offering, and contraventions of anti-fraud regulations, according to official documents submitted by Judge Amy Berman Jackson on June 28. The judge also upheld the regulator's assertion that Changpeng ‘CZ’ Zhao, the former head of the company, had a controlling role, and that Binance should have been registered under the Exchange Act. Nevertheless, not all of the Securities and Exchange Commission's claims were upheld; Jackson chose to throw out accusations concerning BNB secondary market operations and dealings with the Binance USD (BUSD) stablecoin. Jackson utilized Judge Analisa Torres' decision on the SEC's case against Ripple as a point of reference to substantiate her decision to annul the secondary market sales allegation pertaining to BNB. This outcome was unforeseen by finance attorney Scott Johnsson, who labeled it a significant setback for the securities authority. The claims linked to Binance's passive earning feature "Simple Earn" were also turned down by Jackson, who has scheduled a court date for July 9. In June 2023, the SEC, under the leadership of Gary Gensler, filed a lawsuit against Binance, claiming that the crypto platform had marketed unregistered securities and was illicitly operating within U.S. boundaries. Approximately three months later, Binance and CZ attempted to have the SEC case dismissed, alleging that the regulator had overstepped its jurisdictional boundaries. Binance was penalized $2.25M by India's Financial Intelligence Unit, adding to their legal troubles. Seven states in the U.S., including Alaska, Florida, Maine, and North Carolina, have either rescinded Binance's money transmitter license or denied its renewal. As of now, CZ is serving a four-month jail sentence for breaking money laundering regulations. Despite the legal proceedings, Binance continues to be the world's leading crypto exchange, boasting over 200 million users and managing $100 billion in assets.
Published At
6/29/2024 6:51:46 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.