Binance.US, the American arm of the global cryptocurrency platform Binance, recently stated on X (formerly Twitter) that it is gearing up for a prolonged legal dispute with the U.S. Securities and Exchange Commission (SEC).
The court decided to keep the SEC’s case against Binance.US going, which the company expected. Binance.US is eager to address the issues in court and emphasizes that it aims to serve U.S. customers while following American laws and regulations.
The SEC’s case against Binance.US claims the company broke securities laws by offering investments without proper registration and engaging in fraud. Binance.US argues it follows U.S. laws closely, keeps a 1:1 reserve for all customer funds, and uses strong compliance measures to ensure the platform is safe and trustworthy.
Binance.US has criticized the SEC’s approach as “regulation by enforcement,” suggesting that the agency’s actions are politically motivated, particularly under the leadership of SEC Chair Gary Gensler.
The company contends that it is a victim of the current administration’s regulatory overreach, a sentiment shared by many within the cryptocurrency industry who feel similarly targeted. Binance.US continues to assert its commitment to legal compliance and transparency amidst these allegations.
Despite Binance.US’s confidence in its legal position, the court has not dismissed the majority of the SEC’s claims. Notably, the court has upheld allegations that Binance CEO Changpeng Zhao exercised control over BAM Trading and Binance.
This development underscores the seriousness of the SEC’s case and the complexity of the legal battle ahead for Binance.US. The company maintains that the SEC’s accusations lack factual and legal support, but this stance has yet to gain favor in court.
The legal dispute between Binance.US and the SEC also involves broader issues related to evidence production and witness depositions. The SEC has been pressing for more detailed information from Binance, particularly regarding the management of customer assets and liquidity.
The regulator’s concerns include potential backdoor methods for controlling customer assets, reminiscent of practices seen in other high-profile crypto cases like FTX. This ongoing tension underscores the significant regulatory and legal challenges facing Binance.US as it navigates the U.S. legal system.
