Binance.US, the American branch of the global cryptocurrency exchange Binance, is getting ready for a legal showdown with the Securities and Exchange Commission (SEC).
In a recent announcement on social media, Binance.US stated that they are prepared for a long period of legal discovery. “On Friday, the Court decided that the SEC’s case against Binance.US will continue. We were prepared for this and look forward to having this case move forward in the judicial process,” they said.
Allegations from the SEC
The SEC’s allegations against Binance.US include violations of securities laws, offering unregistered investment products, and anti-fraud breaches. Binance.US was created specifically to serve U.S. customers and promises to follow U.S. rules and regulations.
“We maintain 1:1 reserves for all customer assets and have robust compliance and risk programs which ensure the safety, security, and integrity of our platform,” Binance.US stated.
Binance.US Criticizes SEC’s Approach
Binance.US has criticized the SEC’s regulatory methods, describing them as “regulation by enforcement.” They also claim that their current challenges are due to politically motivated actions by the administration, led by SEC Chair Gary Gensler.
“It is unfortunate that we, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach and politically motivated overreach under its current leadership,” Binance.US commented.
Despite facing legal challenges, Binance.US remains confident in their position. They claim that the SEC has not found any evidence of wrongdoing. Through an 11-month discovery process, Binance.US asserts that the SEC’s case “is unsupported by the facts or the law.”
However, in a recent court filing on June 28, Binance.US failed to convince a U.S. court to dismiss most of the SEC’s claims. The allegation that Binance CEO Changpeng “CZ” Zhao acted as a “control person” remains unresolved.
