Binance and CEO Changpeng Zhao Move to Dismiss SEC Lawsuit
Cryptocurrency exchange Binance and its CEO, Changpeng Zhao, have filed a joint motion to dismiss the lawsuit brought by the US Securities and Exchange Commission (SEC).
The Securities and Exchange Commission exceeded its authority
On September 21, the US District Court received a statement from Zhao and Binance Holdings, alleging that the SEC had exceeded its authority.
In a 60-page petition, the lawyers blamed the regulator of Failure to submit clear directions on Industry regulation, leading To impose its authority retroactively on sector.
“The SEC is monitoring these matters novel Retrospective theories, seeking to impose responsibility for sales of encryption assets that has happened so far back As of July 2017, before the SEC introduced any public Cryptocurrency Guidance.
Binance lawyers believe the SEC is misinterpreting securities laws and wrongly applying them to cryptocurrencies assets.
“Trying to win regulatory power over In the cryptocurrency industry, the Securities and Exchange Commission (SEC) is distorting the script of Securities laws.”
In addition to the petition of Binance and Chow, the American arm of Cryptocurrency exchange Binance.US also He reportedly requested dismissal of Counts in A separate 56-page filing was filed on the same day.
Legal issues for Binance
On June 5, the SEC filed 13 charges against CZ and Binance, their defendants of various Abuse, including fraud and manipulation.
Organizer also It claims that Zhao and Binance were secretly controlling all operations of Their American subsidiary, Binance.US.
Action taken by the Securities and Exchange Commission against Binance comes three months after the Commodity Futures Trading Commission (CFTC). also File a lawsuit against Binance for Failure to register with This and for Many violations of that it rules.
However, Binance stated that it has always sought cooperation with Organizer and resolve everyone problems Through negotiations. They also expressed their disappointment, instead of In pursuing a constructive process, the SEC decided to act unilaterally and initiate litigation.