A courtroom tug-of-war between Binance and US SEC continues.
In an ongoing legal dispute, Binance, its US arm Binance.US, and CEO Changpeng "CZ" Zhao have recently voiced accusations against the United States Securities and Exchange Commission (SEC).
The legal representatives of the Binance entities have submitted a motion claiming that the SEC has presented the public with potentially deceptive assertions related to the ongoing lawsuit.
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The legal counsels of Binance, Binance.US, and CEO Zhao submitted the motion on June 21st in the US District Court for the District of Columbia.
The lawyers argue that the SEC's assertions, made in a June 17th press release, were misleading and have called upon the financial regulator to conform to "applicable rules of conduct."
The focal point of their objection was the claim made by SEC Enforcement Director Gurbir Grewal that Zhao and Binance possess the power to "commingle customer assets or divert customer assets as they please." Binance entities also took issue with an order requiring all parties implicated in the lawsuit to return to the United States.
In the motion, Binance claims that SEC has no proof that Binance.US user funds were "dissipated, commingled or misused in any way." On top of that, the filing read:
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.
If the court approves the order, the SEC might be prohibited from making certain public remarks concerning the Binance lawsuit throughout the trial that "may materially impact court proceedings."
This legal filing is part of the ongoing lawsuit the SEC initiated against Binance, Binance.US, and CZ on June 5th. The lawsuit claims that Binance failed to register as a broker-dealer, clearing agency, or exchange and offered unregistered securities.
In an attempt to freeze all assets of Binance.US, the SEC filed a motion. However, the parties arrived at a compromise agreement stipulating that only the crypto exchange's employees would have access to client funds for the duration of the legal proceedings.
The recent motion suggests an escalation in the legal battle between Binance, Binance.US, CEO Zhao, and the SEC. As the case continues, it underscores the increasing scrutiny of global cryptocurrency exchanges and the necessity of clear regulatory guidelines.
