Changpeng Zhao (CZ) & Binance Exchange petitioned the court to dismiss the lawsuit filed by the US regulator against BinanceUS.
Binance is a global crypto exchange, known for its highly secured crypto services. This year, the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) charged BinanceUS with conducting unregistered securities and commodity offerings and operating an unregistered national stock exchange.
On September 21, 2023, a court submit showed that Binance and its CEO Changpeng Zhao (CZ) filed a petition in court stating that the US SEC had exceeded its authority in the lawsuit against them.
Binance Holdings, the company behind the cryptocurrency exchange Binance, tried to explain that the SEC body is trying to gain power over the crypto sector, distorting the text of the securities laws.
Indirectly, the petition filed noted that there are no laws in the Securities Act book that give the SEC the authority to interfere with the crypto business.
On the same day, Binance’s US subsidiary BinanceUS filed a 56-page petition with the court to dismiss the case.
The US SEC sued Binance, BinanceUS and CZ on June 5 this year. Three months before the SEC’s lawsuit, the CFTC agency sued Binance for conducting unregistered commodity offerings in the US jurisdiction while ordering the exchange not to provide services to the US. Later, CFTC Chairman Rostin Behnam clarified the gist of the lawsuit, saying that US citizens were using Binance’s crypto services unethically using VPN services, which was Binance Exchange’s fault.
Here, Binance and BinanceUS are not only the crypto exchanges facing legal hurdles in the US, but also large numbers of crypto companies that are struggling. Currently, US crypto exchange Coinbase and San Francisco-based blockchain company Ripple (XRP) are also vigorously opposing the SEC’s charges to win the battle in court.
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