{"id":8648,"date":"2023-06-22T20:08:57","date_gmt":"2023-06-22T20:08:57","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2023\/06\/22\/binance-accuses-sec-of-misleading-public-amid-ongoing-lawsuit\/"},"modified":"2023-06-22T20:08:57","modified_gmt":"2023-06-22T20:08:57","slug":"binance-accuses-sec-of-misleading-public-amid-ongoing-lawsuit","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2023\/06\/22\/binance-accuses-sec-of-misleading-public-amid-ongoing-lawsuit\/","title":{"rendered":"Binance Accuses SEC of Misleading Public Amid Ongoing Lawsuit"},"content":{"rendered":"

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Binance.US, its global counterpart Binance Holdings Limited, and the firm\u2019s CEO Changpeng \u201cCZ\u201d Zhao have accused the U.S. Securities and Exchange Commission (SEC) of deliberately misleading the public through statements it made surrounding a currently unfolding securities lawsuit<\/a>. The allegation is part of a motion filed by legal representatives of the cryptocurrency exchanges on June 21 in the U.S. District Court for the District of Columbia.<\/p>\n

\u201cNo compelling evidence\u201d<\/h2>\n

The filings argue that the SEC\u2019s assertions made on June 17, as detailed in a press release<\/a>, were \u201cmisleading\u201d and called for the financial watchdog to adhere to the \u201capplicable rules of conduct.\u201d The filing specifically referred to SEC Enforcement Director Gurbir Grewal\u2019s claims that CZ and Binance could \u201ccommingle customer assets or divert customer assets as they please\u201d and sent an order requiring all parties involved in the lawsuit to return to the United States.<\/p>\n

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Lmao @ Binance v. SEC #FireGensler<\/a><\/p>\n

Court: “I want to know, are BAM assets going offshore? Is it happening or is it not? It’s stunning to me that I’ve now asked this question to each of the SEC attorneys 5 times.”<\/p>\n

SEC: “So currently the assets are not going offshore\u2026 We’re not\u2026 pic.twitter.com\/QkEY5HM2ji<\/a><\/p>\n

\u2014 Tree of Alpha (@Tree_of_Alpha) June 21, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Binance representatives fought back in the June 21 court filing<\/a>, stating, \u201cThe SEC has no evidence that BAM [Binance.US] customer assets have been dissipated, commingled or misused in any way.\u201d <\/p>\n

The filing further argued that the SEC\u2019s press release seemed \u201cdesigned to introduce unwarranted confusion into the marketplace, which could have the effect of harming BAM customers rather than protecting them. It also risks tainting the jury pool with misleading descriptions of the evidence concerning the Defendants.\u201d<\/p>\n

If approved by a federal judge, the motion could limit the SEC\u2019s capacity to make public comments about the Binance lawsuit throughout the case\u2019s duration, particularly comments that \u201cmay materially impact court proceedings.\u201d As part of their argument, Binance\u2019s legal team included excerpts from a June 13 hearing where SEC counsel admitted there was no proof of Binance.US assets being funneled overseas.<\/p>\n

The motion is part of the SEC\u2019s broader lawsuit, initiated on June 5 against Binance, Binance.US, and CZ, accusing them of offering unregistered securities and neglecting to register as an exchange or a broker-dealer clearing agency. At the time, SEC Chair Gary Gensler alleged that CZ and Binance had deceived investors about the robustness of their risk controls, with the regulator pursuing disgorgement and other penalties.<\/p>\n

The SEC moved to have the court freeze all Binance.US assets, but a compromise was reached<\/a> whereby only the exchange\u2019s employees can access client funds during the lawsuit. <\/p>\n

Editor\u2019s note: This article was written by an nft now staff member in collaboration with OpenAI\u2019s GPT-4.<\/em><\/p>\n<\/p><\/div>\n