Legal Battle: Binance CEO CZ Takes SEC to Court in Effort to Dismiss Lawsuit

Crypto News- In recent news, Binance Holdings Limited and its CEO and co-founder, Changpeng Zhao, have taken legal action to challenge a lawsuit brought against them by the U.S. Securities and Exchange Commission (SEC), as reported by Bloomberg.

Legal Battle: Binance CEO CZ Takes SEC to Court in Effort to Dismiss Lawsuit

In their 60-page petition, Binance and Zhao assert that the SEC has overstepped its authority in pursuing this legal action. The petition also sheds light on other recent actions taken by the SEC, which they are now urging the court to dismiss.

Moreover, Binance and Changpeng Zhao argue that the SEC is retroactively enforcing its regulations to penalize them for actions that were not clearly addressed in the past. They contend that the SEC failed to provide sufficient public guidance on these matters.

The legal team representing Binance and Zhao further accuses the SEC of intentionally muddying the waters when it comes to securities law language to extend its control over the cryptocurrency industry.

Notably, Binance.US, a separate entity, has also lodged a similar petition against the SEC, making similar claims and seeking the dismissal of the SEC’s lawsuit against them.

This legal maneuvering comes in the wake of a series of regulatory hurdles that Binance.US, Binance Holdings, and Zhao have faced throughout the year. The SEC has specifically accused the exchange of mishandling customer funds, misleading investors, and offering unregistered securities. However, both the company and Zhao have consistently denied these allegations.

Previously, the court rejected the SEC’s request for an inspection order, and the regulator had also accused Binance.US of being uncooperative during its ongoing investigation.

As a consequence of these regulatory challenges and negative publicity, Binance, once a dominant player in the cryptocurrency market, has seen a significant decline in its market share. This situation has been further exacerbated by recent layoffs and the departure of key executives.