Originally published on: November 05, 2024
Binance and its former CEO Changpeng “CZ” Zhao are ramping up their legal defense against the US Securities and Exchange Commission (SEC) as they file a motion to dismiss the SEC’s amended complaint. The allegations revolve around violations related to various cryptocurrencies, including tokens like Axie Infinity Shards, Filecoin, ATOM, The Sandbox, and Decentraland.
In the motion filed on Nov. 4, Binance’s legal team is pushing back against the SEC’s claims, arguing that the court has already recognized the distinction between crypto assets and investment contracts. The SEC’s amended complaint attempts to label nearly all transactions involving crypto assets as securities transactions, a stance that Binance and CZ vehemently oppose.
According to Binance’s defense, the claims made by the SEC do not hold up under legal scrutiny and should be dismissed with prejudice. The SEC’s assertions stem from blind transactions conducted by Binance Holdings on its exchanges, where buyers allegedly purchased tokens without full knowledge of the seller or the transaction details.
This legal battle marks yet another chapter in the ongoing feud between Binance and the SEC, which began over a year ago when the SEC initially sued Binance in June 2023. CZ’s recent legal troubles include a brief stint in a US federal prison after pleading guilty to charges related to violating US Anti-Money Laundering laws.
As the crypto industry faces increasing regulatory scrutiny, the outcome of this legal tussle between Binance and the SEC could have far-reaching implications for the future of cryptocurrency trading. Stay informed on the latest developments by subscribing to our Markets Outlook newsletter for critical insights and expert analysis. Don’t miss out on key updates that could impact your investment strategies.
