After reaching a deal with the United States Securities and Exchange Commission (SEC), Binance and its legal team have vehemently denied these allegations and have now filed a motion claiming that the SEC issued misleading statements in the lawsuit. The SEC has accused Binance and CEO CZ of evading law and listing unregistered securities and offerings.
Binance Denies SEC Allegations
Binance and its legal team – in a June 21 filing in the US District Court for the District of Columbia – allege that the SEC issued misleading statements regarding the handling of customer assets. According to Gurbir S. Grewal, Director of the SEC’s Division of Enforcement:
Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets.
While referring to Grewal’s statements, lawsuit highlights that the SEC has no evidence that the exchange commingled customers’ assets or diverted the assets at will.
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Binance also accuses the chairman Gary Gensler of a conflict of interest. They alleged that Gensler once applied for an informal adviser to the exchange before being appointed as the SEC chair.
What If SEC Loses The Motion?
“The SEC’s press release also appears to be designed to introduce unwarranted confusion into the marketplace, which could have the effect of harming BAM customers rather than protecting them. It also risks tainting the jury pool with misleading descriptions of the evidence concerning the Defendants,” the exchange noted.
Binance’s motion, if approved by the judge, could restrict the SEC from making certain statements publicly, aiming to prevent market confusion and protect the exchange’s reputation.
Few days back, Binance.US made a deal with SEC which would restrict Binance Global officials from accessing customer funds on Binance.US. CZ expressed relief over the same through a tweet on June 17.
In the initial charges filed on June 5, as CoinGape reported, SEC Chairman Gensler alleged that CZ and Binance of several law evasions. Consequently, the SEC filed thirteen charges against both Zhao and exchange.
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