Binance vs SEC: Exchange expects case to be dismissed at hearing
Binance vs SEC: Exchange expects case to be dismissed at hearing
On January 19, the Court of Washington will hold a hearing on the case of the SEC against Binance, at which Binance expects the court to reject the claim of the regulator.
Binance will appear in court against the SEC on Friday, marking the second high-profile hearing this week involving the regulator and the leading cryptocurrency exchange. The first was the hearing in the Coinbase case.
The SEC's lawsuit accuses the crypto exchange of artificially inflating trading volumes, soliciting US clients, failing to account for user funds, and misleading investors about market controls, Reuters reported.
The SEC also accuses Binance of violating the law for trading cryptocurrency tokens, which are classified as securities.
Earlier, SEC Chairman Gary Gensler said, "We have filed 13 charges alleging that Binance and Changpeng Zhao engaged in an extensive web of deception, conflicts of interest, failure to disclose information, and willful evasion of the law."
Such allegations are based on the SEC's policy of shifting claims from companies that sell digital tokens to trading platforms and clearing activities.
Binance argues that the SEC has no authority to oversee crypto assets. Cryptocurrency exchange Coinbase has taken a similar stance, with a hearing held on Wednesday. Coinbase has been accused of operating as an unregistered securities exchange but has not been charged with fraud. Coinbase is also awaiting the dismissal of a lawsuit regarding its operation as an unregistered securities exchange.
Binance previously reached a settlement with the Department of Justice and the Commodity Futures Trading Commission (CFTC). The settlement price was $4.3 billion, and CEO Changpeng Zhao pleaded guilty to violating US anti-money laundering laws.
Despite this, the SEC's case against Binance remains unresolved, posing a serious threat to the company's operations.
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