- The SEC has leveraged Binance’s $4.3B settlement to intensify its ongoing legal confrontation.
- The SEC has maintained its pursuit of alleged securities breaches.
- The SEC has eyed an opportunity to fortify its case against the cryptocurrency giant.
In a relentless pursuit of its pound of flesh, the U.S. Securities and Exchange Commission (SEC) is not letting up on Binance. Even after the recent $4.3 billion settlement with the Department of Justice (DOJ), the SEC still harbors ambitions to hold the exchange accountable for its alleged wrongdoings.
Binance Confessions May Spell Trouble in SEC Lawsuit
Despite not being part of the settlement agreement, the SEC contends that the admissions made by Binance and its former CEO Changpeng Zhao in the November 21st settlement should be considered by the federal court in Washington, DC, handling the SEC’s case.
Both Binance and Zhao have filed motions to dismiss the SEC’s lawsuit, which was filed in June, alleging that the exchange mishandled customer funds, misled investors and regulators, and violated securities rules. Representatives from Binance and Zhao’s defense attorney have not yet commented on the SEC’s latest statement.
SEC Eyes Binance’s Admissions in DOJ Settlement
While Binance’s record-breaking settlement with the US government concluded investigations spanning several years by the Department of Justice, various branches of the Treasury Department, and the CFTC, the SEC’s lawsuit remained unaffected. The SEC’s case focuses specifically on allegations of securities violations, a matter not addressed by the DOJ settlement.
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The SEC’s decision to highlight Binance’s admissions in the DOJ settlement suggests it sees an opportunity to strengthen its case against the exchange. The admissions could potentially be used to demonstrate Binance’s pattern of non-compliance with regulatory requirements, which could support the SEC’s claims of securities violations.
On the Flipside
- Binance has denied any wrongdoing regarding the allegations made by the SEC, emphasizing its commitment to compliance and the enhancement of regulatory measures.
- The SEC’s reliance on Binance’s admissions in the DOJ settlement might not significantly impact the outcome of the SEC’s lawsuit.
Why This Matters
The SEC’s efforts to incorporate Binance’s DOJ settlement into its ongoing case could intensify the legal battle between the two parties. The outcome of this case could significantly impact the regulatory landscape for cryptocurrency exchanges and the broader crypto industry.
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To learn more about the legal implications surrounding the former Binance CEO CZ’s mandated stay in the US until trial, read here:
Ex-Binance CEO CZ Mandated To Remain In U.S. Until Trial
To explore further insights on whether we are entering a bull market as suggested by a Binance report, read here:
Are We Entering a Bull Market? Binance Report Suggests So
