Binance Rejects SEC's Attempt to Include DOJ Guilty Plea in Ongoing Litigation
Summary:
Responding to a move by the US Securities and Exchange Commission (SEC) to include Binance's admission of guilt to the DOJ into their own litigation, Binance Holdings and its former CEO, Changpeng Zhao, have objected. Binance filed a document to the U.S. District Court arguing that incorporating the $4.3 billion guilty plea and settlement with the DOJ into the ongoing lawsuit is a procedural error. The SEC posits the settlements as proof of Binance's conscious U.S operations, while Binance counters this as an unacceptable supplementary brief introducing new facts and arguments.
In reaction to a recent move by the U.S. Securities and Exchange Commission (SEC), Binance Holdings and its former CEO Changpeng Zhao have raised an objection. The SEC sought to incorporate Binance's admission of guilt to the Department of Justice (DOJ) into their litigation. Binance maintains in the document submitted to the U.S. District Court for the District of Columbia that trying to factor the $4.3 billion guilty plea and resolution agreement with the DOJ into the ongoing lawsuit is a procedural error and shouldn't be granted.
The legal battle between Binance and SEC started on June 5, 2023, when the regulator accused the firm of 13 securities violations. These allegations included the handling and redirection of client assets on Binance.US by Zhao and Binance, as detailed in the charges.
In November, the DOJ reached an independent agreement with Binance and its former CEO, putting an end to the investigation into the company. The settlement required Binance to hand over $4 billion in fines while continuing operations in compliance with U.S. laws.
While the SEC was not officially part of the agreement, it argued that the court hearing the case against the exchange should defer to the statements and acknowledgements made by Binance and Zhao during the November 21 settlement. The SEC posited these settlements as evidence of Binance's conscious operation in the U.S, serving U.S. clients, and utilizing American infrastructure for transactions. In response, Binance stated that the SEC failed to detail how the settlements with the DOJ were relevant to the SEC's 'unfounded accusations' against Binance Holdings and Changpeng Zhao.
In documents filed on December 12, 2023, Binance countered that the SEC's notice doesn't support its June 2023 lawsuit claims and described it as an unacceptable supplementary brief introducing new facts and arguments, giving a strong reason to ignore it.
Furthermore, Binance clarified that substituting a court notice for amending a complaint is not acceptable. It suggested that the SEC's move to exploit settlements with other departments reveals a lack of understanding about any relevant regulatory power the SEC might have.
Published At
12/13/2023 12:10:18 PM
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