The SEC’s Lawsuit against Binance and CZ
On June 3, 2021, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its CEO, Changpeng Zhao (CZ). The lawsuit alleges that Binance and CZ violated U.S. securities laws by allowing U.S. customers to trade digital assets that are considered securities.
The SEC alleges that Binance and CZ had knowledge that U.S. customers were trading digital assets that were considered securities, yet failed to register as a broker-dealer or take other necessary steps to comply with U.S. securities laws. The SEC also alleges that Binance and CZ failed to register the digital assets as securities.
The SEC is seeking a permanent injunction to stop Binance and CZ from further violating U.S. securities laws, as well as civil penalties and disgorgement of profits. Binance and CZ have denied the allegations and are fighting the lawsuit.
Binance’s Response to the Lawsuit
Binance has denied the allegations and stated that it has always operated in compliance with applicable laws and regulations. Binance has also stated that it will vigorously defend itself against the SEC’s claims.
In a statement released by Binance, the company said that it “will vigorously defend itself against the SEC’s claims and is confident that its actions will be vindicated.” The statement also noted that Binance “has always operated in compliance with applicable laws and regulations and is committed to continuing to do so.”
Binance also noted that it has “worked diligently to ensure compliance with all applicable laws and regulations” and that it “will continue to do so in the future.” The statement concluded by noting that Binance “will continue to cooperate with the SEC in its investigation and will continue to provide the SEC with all the information requested.”
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