Defendants’ attorneys allege the SEC misled the public in the Binance securities case. Binance, Binance.US, and CEO CZ Zhao are actively involved in the ongoing case. The United States SEC is also a party in the matter. On June 21, the plaintiff filed the motion in the US District Court for the District of Columbia. It alleges that the SEC’s June 17 press release included “misleading” statements.
Gurbir Grewal, the director of SEC Enforcement, made comments that CZ and Binance might “commingle customer assets or divert customer assets as they please”. This motion directly responds to such remarks. The legal teams assert that the SEC’s news release aimed to confuse and harm Binance.US customers, not protect them. They argue that the SEC lacks evidence to support these accusations.
Additionally, the motion expresses concerns about how the SEC’s words may affect the jury pool and demands that it adhere to the “applicable rules of conduct”. If granted, the request would prevent the SEC from making certain public statements about the complaint during the pending case. The aim is to avoid statements that could significantly impact court proceedings.
Lmao @ Binance v. SEC #FireGensler
Court: “I want to know, are BAM assets going offshore? Is it happening or is it not? It’s stunning to me that I’ve now asked this question to each of the SEC attorneys 5 times.”
SEC: “So currently the assets are not going offshore… We’re not… pic.twitter.com/QkEY5HM2ji
— Tree of Alpha (@Tree_of_Alpha) June 21, 2023
Binance’s legal team provided a transcript clip from a June 13 hearing. The SEC’s attorney admitted the lack of evidence regarding asset movement from Binance.US overseas.
The SEC filed a larger action against Binance, Binance.US, and CZ on June 5 alleging unregistered securities offerings and Binance’s failure to register as an exchange or broker-dealer clearing agency. The court filing is a component of that lawsuit. Gary Gensler, the SEC chairman, accused CZ and Binance of misleading investors about risk controls. The regulator is seeking disgorgement and other penalties as a result.
Initially, throughout the court process, the SEC sought to freeze all of Binance.US’s assets. However, the SEC reached a settlement that restricts access to client cash exclusively to exchange workers during the ongoing legal dispute.
It made news by announcing a licensed cryptocurrency exchange in Kazakhstan amid its legal dispute in the US. The move showcases their expansion efforts into new countries.
Both sides await court rulings on motions as the litigation progresses, drawing attention from within and beyond the crypto industry. The parties involved are expected to eventually resolve the matter with a settlement.
