Binance Faces Uphill Battle as U.S. Court Upholds Key SEC Claims

banner-image

🚀 Stay Ahead with AltcoinDaily.co! 🌐

Binance was unable to persuade a US judge to dismiss the majority of accusations brought against it by the Securities and Exchange Commission (SEC). The court’s decision permits crucial claims against Binance’s staking scheme, the sale of BNB after its initial coin offering, and anti-fraud offenses to proceed.

In a court filing dated June 28, Judge Amy Berman Jackson stated that charges against former Binance CEO Changpeng ‘CZ’ Zhao, as a “control person,” and Binance’s duty to register under the Exchange Act will proceed.

Binance and the SEC

However, the SEC could not gain complete victory. Judge Jackson dismissed all allegations involving BNB secondary market sales and the Binance USD (BUSD) stablecoin. Judge Analisa Torres’ verdict in the SEC’s action against Ripple influenced Jackson’s decision, which she used to dismiss the BNB secondary market sales claim. Finance lawyer Scott Johnsson called the outcome a “big loss” for the SEC, citing the case’s unexpected turn.

  🌟 Unlock Crypto Insights with AltcoinDaily.co! 💰

Eleanor Terrett, a FOX Business correspondent, pointed out that this decision could have larger consequences for other bitcoin sites. She predicted that the legal teams at Coinbase, Kraken, and Consensys will use Jackson’s ruling to strengthen their positions in ongoing lawsuits.

Judge Jackson also dismissed the SEC’s accusations regarding Binance’s passive income tool “Simple Earn,” significantly reducing the scope of the litigation. A court hearing is scheduled for July 9 to resolve the outstanding issues.

Binance will Have to Fight Multiple Claims

The SEC, led by Gary Gensler, filed a lawsuit against Binance in June 2023, saying that the exchange traded unregistered securities and functioned illegally in the United States. Binance and CZ responded to these charges by filing a motion to dismiss the action, claiming that the SEC had exceeded its legal power. Despite these efforts, the court’s recent verdict means Binance will have to continue fighting multiple significant claims.

 🦂 AltcoinDaily.co is your trusted source for the latest in crypto news and insights. 🚀

Seven US states, including Alaska, Florida, Maine, and North Carolina, have either revoked or refused to renew Binance’s money transmitter license. These state-level efforts exacerbate Binance’s legal and operational challenges in the United States.

CZ Serving 4-Month Prison

Adding to Binance’s troubles, CZ is presently serving a four-month prison sentence for breaking money laundering laws. This personal legal trouble for the company’s founder complicates Binance’s regulatory challenges.

Despite continuous legal challenges, Binance remains a significant power in the cryptocurrency market. With more than 200 million customers and $100 billion in assets under control, it remains the world’s largest cryptocurrency exchange. However, the outcome of these legal processes could have a substantial impact on Binance’s future operations and reputation in the financial industry.

 🔍 Your Crypto News Hub: AltcoinDaily.co! 🌐

July 21, 2024

Having being in search of a name for the forthcoming Chang..

July 21, 2024

Kraken Institutional has announced the expansion of its Kraken Custody services..

July 21, 2024

WazirX has responded to its recent breach by launching a bounty..

ads-image ads-image