Binance CEO Zhao asks the court to dismiss the SEC lawsuit-The (Bloomberg) In court documents submitted on Thursday, Binance Holdings Ltd. and Chief Executive Officer Changpeng “CZ” Zhao requested the dismissal of a case brought by the US Securities and Exchange Commission against them.
In a 60-page appeal, Binance and Zhao argued that the agency had overstepped its bounds by suing them. A variety of claims were made by the SEC, including improper handling of customer cash, deceiving investors and regulators, and violating securities laws. Binance and Zhao demanded that the action be dismissed on the grounds that the regulator was attempting to impose fines retrospectively before it had made any official pronouncements about cryptocurrency.
Lawyers for the defendants stated in the petition that the SEC “distorts the text of the Securities Laws” in its attempt to regulate the cryptocurrency business.
Binance.US, formerly known as BAM Trading Services Inc., also requested the dismissal of the accusations against it in a different 56-page petition.
A request for comment made outside of regular business hours was not immediately answered by an SEC spokeswoman.
In June, the SEC filed allegations against Zhao, Binance, and Binance.US. All of them have outright refuted the accusations. The lawsuit was filed by the US derivatives watchdog in March, alleging that Binance and Zhao frequently disregarded its regulations.
Due in part to the regulatory crackdown, Binance and Binance.US have seen their market shares collapse in the following months. Early this month, the CEO of Binance.US left the organization, and at the same time, around a third of the platform’s staff was let go.
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