The Binance legal battle with the United States Securities and Exchange Commission (SEC) has taken a new turn. After reaching a deal with the US regulator, Binance and its legal team have filed a motion accusing the SEC of issuing misleading statements in the lawsuit. Previously, the SEC accused Binance and its CEO Changpeng Zhao of evading the law and listing unregistered securities and offerings.
A June 21 filing in the US District Court for the District of Columbia by Binance’s legal team alleges misleading statements by the SEC regarding the handling of customer assets. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, claimed that Binance and Zhao had control over the platform’s customers’ assets and could freely commingle or divert customer funds. Binance’s lawsuit contends that the SEC has no evidence of either action.
Furthermore, Binance accuses SEC Chairman Gary Gensler of a conflict of interest, alleging that Gensler applied for an informal adviser position with the exchange prior to his appointment as the SEC chair.
Should the judge approve Binance’s motion, the SEC could be restricted from making certain public statements. This aims at preventing market confusion and protecting the exchange’s reputation. Interestingly, Binance.US recently struck a deal with the SEC, which restricts Binance Global officials from accessing customer funds on the platform. CEO Changpeng Zhao expressed relief over the deal on Twitter.
If the SEC loses the motion, it could be seen as introducing unwarranted confusion into the marketplace instead of protecting customers. Additionally, it could potentially harm the jury pool with misleading descriptions of the evidence against Binance and its CEO.
Initially, thirteen charges were filed against Changpeng Zhao and Binance by SEC Chairman Gensler on June 5, alleging several instances of law evasion. The ongoing legal battle between Binance and the SEC is undoubtedly raising important questions and concerns not only for the cryptocurrency exchange and its legal team but also for the entire industry. The final resolution may have far-reaching consequences, ultimately influencing regulations and investor confidence.
As always, it is crucial for individual investors to conduct thorough market research and consider the current state of affairs before moving forward with any cryptocurrency investments. The author and the publication assume no responsibility for any personal financial loss resulting from market decisions.
Source: Coingape
