Crypto News – SEC Files Amended Complaint Against Binance: Key Developments

Crypto News – SEC vs. Binance: Latest Developments in the Lawsuit and Impact on Crypto Market

Crypto News – The U.S. Securities and Exchange Commission (SEC) has filed a proposed amended complaint against the cryptocurrency exchange Binance. This move comes after a federal judge allowed most of the SEC’s charges to proceed while dismissing parts of the initial lawsuit. The revised complaint aims to address the judge’s concerns and bolster the SEC’s case by focusing on ongoing issues such as secondary BNB sales and Binance’s Simple Earn product.

Background on the Initial Lawsuit

The SEC first sued Binance in June 2023, accusing the exchange of operating as an unregistered broker, clearinghouse, and trading venue. The complaint also alleged that Binance offered unregistered securities through its BNB token, the BUSD stablecoin, and its staking services. Binance, along with Binance.US (also known as BAM Trading) and its executives, sought to dismiss the lawsuit. In June 2024, Judge Amy Berman Jackson dismissed claims related to Binance’s Simple Earn product and secondary BNB sales but allowed most of the SEC’s charges to continue.

SEC’s Response to the Judge’s Ruling

In response to the ruling, the SEC’s amended complaint addresses several issues left unresolved by the judge’s previous decision. The filing includes more detailed allegations regarding BNB sales and the Binance Simple Earn product. Additionally, it reinforces claims related to ten digital assets that the SEC argues were sold as unregistered securities.

Details of the Amended Complaint

The SEC’s proposed amended complaint provides a comprehensive overview of the allegations against Binance. It emphasizes that Binance’s BNB token was marketed as an investment in the success of the Binance platform, with claims of potential returns from increased demand and price appreciation. The complaint also highlights how Binance allegedly promoted various tokens, including BNB, and engaged in activities to boost their value.

Focus on Token Listings and Promotions

The amended complaint details Binance’s role in listing and promoting a variety of tokens. It asserts that Binance has been integral to the crypto asset markets, amplifying promotional statements of token issuers and engaging in practices that encourage investment in these assets. This includes detailed allegations about how Binance’s approval of token listings involves negotiations that impose requirements on issuers to incentivize trading on the platform.

Changes and Clarifications in the Filing

The SEC has made significant changes in its filing, including the removal of the term “crypto asset securities.” Instead, it refers to “crypto assets that were offered and sold as securities” to avoid confusion. The SEC clarifies that its focus is on the contracts, expectations, and understandings surrounding these assets rather than the assets themselves being classified as securities indefinitely.

Impact on Binance and Legal Proceedings

The SEC argues that allowing the amended complaint to proceed will not unduly harm Binance, as the exchange has been aware of the allegations since June 2023 and will still have the opportunity to respond. Binance has until October 11 to oppose the motion to file the amended complaint.

FAQ: SEC’s Amended Complaint Against Binance