A judge allowed most SEC charges against Binance to proceed, but dismissed some related to secondary BNB sales and the Simple Earn program.
Binance is a leading cryptocurrency exchange platform, known for its extensive range of digital assets and trading features, offering services such as spot and futures trading, staking and various financial products. In the US, Binance offers crypto services through a subsidiary, BinanceUS.
On June 28, 2024, Judge Amy Berman ruled against Jackson ruled that the SEC (the US Securities and Exchange Commission) could proceed with most of its charges against Binance. These charges include issues related to BNB’s initial coin offering, ongoing sales, the BNB Vault, staking services, failure to register, and fraud allegations.
However, the judge agreed to dismiss the charges related to BNB’s secondary sales and Binance’s Simple Earn program. This means that Binance still faces significant legal challenges, but some specific allegations have been dropped.
Here, people should know that similar accusations are also facing other top US crypto exchanges, Kraken and Coinbase.
Some legal experts believe that it will take a long time to reach resolutions in SEC cases against crypto companies (Binance, Coinbase, Kraken) due to significant complications surrounding the applicability of rules and laws to cryptocurrencies.
The SEC has attempted to crack down on crypto companies for their inability to comply with traditional financial rules and laws, which were developed long before the origins of cryptocurrencies.
Binance vs US DOJ
In November 2023, Binance agreed to a $4.3 billion settlement with the US Department of Justice (DOJ) to resolve its criminal securities law case.
Currently, Binance’s co-founder and former CEO Changpeng Zhao (CZ) is spending his life in prison as part of the settlement and court ruling on the AML violation allegations. He has already been in prison for 1 month and now another 2 months.
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