Important Court Decision in Binance Lawsuit: SEC Claims to Continue

SEC vs. Binance Lawsuit: Court Allows Most Claims to Proceed

The US court has rejected Binance‘s attempts to have the majority of the accusations brought against it by the nation’s securities regulator dismissed. Judge Amy Berman Jackson announced in a June 28 court filing that claims concerning Binance’s staking scheme, the sale of BNB following its initial coin offering, and anti-fraud offenses will continue.

The security regulator will also pursue its allegations that Binance was required to register under the Exchange Act and that former CEO Changpeng “CZ” Zhao behaved as a “control person.” The SEC did not, however, win all of its cases; in the end, Jackson decided to reject all of the BNB secondary market sales claims as well as all BUSD stablecoin sales claims.

What was the Beginning of the Case?

In June 2023, Binance was sued by the Gary Gensler-led SEC, which claimed the company was operating illegally in the United States and that it offered the sale of unregistered securities. About three months later, Binance and CZ filed a motion to dismiss the SEC action, claiming the SEC had overreached its legal bounds.

Seven U.S. states—Alaska, Florida, Maine, and North Carolina—have either revoked Binance’s money transmitter license or prevented it from renewing. Despite the legal dispute, Binance continues to be the biggest cryptocurrency exchange globally, boasting more than 200 million users and managing $100 billion in assets.

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