Binance and Changpeng Zhao ask court to dismiss SEC lawsuit
Binance and Changpeng Zhao ask court to dismiss SEC lawsuit
Cryptocurrency exchange Binance and its CEO Changpeng Zhao have filed a motion in U.S. District Court to dismiss a lawsuit filed against them by the U.S. Securities and Exchange Commission (SEC).
In its June 5 complaint, the SEC accused Binance.US, Binance, and Changpeng Zhao of 13 violations of U.S. law, including trading in unregistered securities and creating and operating a "web of deception."
And now, more than 3 months later, Binance and its founder have said in a motion filed with the court that the SEC is exceeding its authority by going beyond regulatory requirements. That is, Binance's lawyers believe that the SEC's intentions to exert control over the cryptocurrency industry misrepresent the true purpose of the securities laws.
It is worth noting that the U.S. division of the Binance exchange, Binance.US, has filed a separate motion with the court requesting that the charges brought against it by the U.S. regulator be dropped.
According to information published on the Coincu portal, the SEC alleges that Binance.US facilitated sham trading through Sigma Chain, a company owned by Changpeng Zhao. Under securities laws, "sham" trading is an illegal way to manipulate the market.
The lawsuit filed by Binance and Changpeng Zhao claims that the SEC's allegations have no real evidence and that any existing evidence is populist.
In addition, the lawsuit states that the SEC's actions are inconsistent with U.S. law, which requires federal agencies to wait for congressional action on important economic or policy issues that are not explicitly set forth in the regulatory framework.
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