- The SEC case against Binance has raised several talking points.
- Binance has revealed the desire to end the case as quickly as possible.
- The crypto exchange has pushed against the expedition of discovery.
While still in the pretrial stages, the United States Securities and Exchange Commission case against Binance has generated several talking points, with the bulk of the initial contention being the safety of customer deposits on Binance.US.
Following an agreement to protect customer assets on June 17, the defendants, including Binance, Binance.US, and Binance Chief Executive Officer Changpeng “CZ” Zhao, have now revealed their intent to seek dismissal of the SEC’s charges in a recent status report.
Binance to Seek Dismissal
In a joint status report filed with the court on Friday, June 23, the defendants revealed their intentions to file for the dismissal of the SEC case.
Sponsored
Per a tentative schedule submitted by the SEC and Binance representatives, the defendants will submit these motions to dismiss on September 21 as part of responses to the SEC’s initial complaint.
The defendants notably face 13 charges in the lawsuit, including operating an unregistered securities exchange, misleading customers about trading controls, and mishandling customer deposits.
A Binance.US attorney declined to comment on the matter, while a Binance attorney did not immediately respond to a request for comment.
Sponsored
Attorneys representing the defendants revealed intentions to file for dismissal while arguing against the expedition of the fact-finding process.
The SEC has called for discovery to begin in September, arguing that the gravity of claims outlined in its complaint necessitated the acceleration of the process. The regulator also claims that further delays will render evidence stale, impacting its ability to prosecute the case.
On the other hand, the defendants argue that discovery should wait till the court evaluates its “anticipated motions to dismiss.” Amongst arguments for a deferral, Binance representatives contend that the SEC already conducted an “extensive investigative discovery” before filing the lawsuit.
On the Flipside
- Binance attorneys have slammed the SEC for allegedly making misleading claims about the consent order agreement to protect customer deposits.
- The crypto exchange and its U.S. affiliate have significantly beefed up their legal ranks to prepare for the SEC case.
- The crypto exchange also faces a lawsuit from the Commodity Futures Trading Commission.
Why This Matters
The SEC case against Binance could easily rank as the regulator’s biggest crypto enforcement action yet. Binance signaling intentions to dismiss the case suggest that the crypto exchange would like to bring the matter to an end quickly if possible.
Read this to learn more about Binance’s latest legal hire for the SEC case:
Binance Prepares to Battle SEC with Former DOJ Prosecutor Hire
See Matrixport’s Bitcoin price prediction for July:
Matrixport Bullish on Bitcoin’s July Prospects on the Road to $45K
