Binance and Changpeng Zhao File Motion to Dismiss SEC Lawsuit
Binance and Changpeng Zhao have filed a motion to dismiss the SEC lawsuit, arguing no harm to investors and disputing BNB's classification as a security. Read more on BeInCrypto.
Posted 10 months ago in Blockchain
Binance, Binance.US, and CEO Changpeng Zhao have requested the dismissal of the SEC lawsuit against them, arguing no harm was done to investors and disputing the classification of BNB as a security. According to a recent court filing, Binance, Binance.US, and CEO Changpeng “CZ” Zhao have formally asked for the dismissal of the United States Securities and Exchange Commission (SEC) lawsuit filed against them.
The SEC’s claims against BHL and Mr. Zhao fail as a matter of law,” the filing stated. Binance aims to dispel all allegations in the lawsuit. The SEC filed the lawsuit on June 5, leveling 13 charges against the crypto exchange, including allegations of operating unregistered exchanges, broker-dealers, and clearing agencies.
The recent filing asserts that investors did not suffer any harm and raises the issue of the lawsuit’s validity. It underlines its argument on the SEC’s lack of clarity regarding the definition of a security. The filing further disputes BNB – a token introduced by Binance – being labeled a security during the initial coin offering (ICO) period. It asserts that the accusation is ‘time-barred’ and that the SEC failed to ‘plausibly allege’ that the offering was a ‘domestic transaction.’
Binance and CEO Changpeng “CZ” Zhao also contend that only the US Congress has the authority to make policy decisions of the ‘magnitude’ that the SEC is asking the court to make. This comes after resignations of legal and risk executives at Binance.US, with the head of legal, and chief risk officer stepping down.
In summary, Binance and CEO Changpeng “CZ” Zhao have filed a motion to dismiss the SEC lawsuit claiming no harm was done to investors and disputing the classification of BNB as a security.
Last updated 9/22/2023, 3:10:57 AM
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