Brayden Lindrea5 hours agoCourt allows most SEC claims to proceed in Binance suitJudge Amy Berman Jackson however dismissed the SEC’s claim that BNB is traded illegally on secondary markets, citing the Ripple decision.1770 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCryptocurrency exchange Binance has failed to convince a United States court to dismiss most claims made against it by the country’s securities regulator.
Claims related to Binance’s staking program, the sale of BNB (BNB) after its initial coin offering and anti-fraud violations will proceed, Judge Amy Berman Jackson stated in a June 28 court filing.
The security regulator’s claim that former Binance CEO Changpeng “CZ” Zhao acted as a “control person” will also proceed, as will its claim that Binance was obligated to register under the Exchange Act.
But it wasn’t a clean sweep for the Securities and Exchange Commission — with Jackson ultimately deciding to dismiss claims related to BNB secondary market sales and all sales related to the Binance USD (BUSD) stablecoin.Memorandum Opinion and Order from Judge Amy Berman Jackson in Binance Holdings v SEC. Source: CourtListener
Jackson cited Judge Analisa Torres’ ruling in the SEC’s case against Ripple to support her decision to dismiss the SEC’s BNB secondary market sales claim.
It took finance lawyer Scott Johnsson by surprise, who described it as a “big loss” for the securities regulator.Source:Scott Johnsson
Fox Business reporter Eleanor Terrett expects lawyers at Coinbase, Kraken and Consensys will “use this opinion to bolster their positions in their own litigations."
Jackson also knocked back the SEC’s claims related to Binance’s passive income feature “Simple Earn.”
Jackson scheduled a court hearing for July 9.
The Gary Gensler-led SEC sued Binance in June 2023, claiming Binance offered the sale of unregistered securities and was operating illegally in the U.S.
Binance and CZfiled to dismiss the SEC lawsuitabout three months later, arguing that the SEC exceeded its legal authority.
Related:Binance fined $2.25M by India’s Financial Intelligence Unit
Seven U.S. states have either revoked or not allowed Binance to renew its money transmitter licence — including Alaska, Florida, Maine and North Carolina.
Meanwhile, CZ is currently serving a four month prison sentence for violating money laundering laws.
Despite the lawsuit, Binance remains the largest cryptocurrency exchange in the world, with over 200 million users and $100 billion in assets under management.
Magazine:Deposit risk: What do crypto exchanges really do with your money?# Altcoin# Business# Security# SEC# Adoption# Changpeng Zhao# Court# Binance# Stablecoin# Binance Coin# Binance USD# Gary GenslerAdd reaction