Binance Faces SEC Lawsuit Over Unregistered Securities, Court Proceeds with Some Claims
Zach Anderson Jun 29, 2024 12:13
Binance faces US SEC claims for staking program, BNB token sale, anti-fraud violations, and former CEO Changpeng Zhao's control, but court dismisses secondary market sales and Binance USD stablecoin sales.
In the present moment, the United States Securities and Exchange Commission (SEC) has initiated legal action against Binance, which is one of the most prominent cryptocurrency exchanges in the world. Binance is accused of violating federal securities laws by the Securities and Exchange Commission (SEC) for proposing the sale of unregistered securities and for doing business in the United States in an improper manner. There are a number of allegations that have been made against Binance in this legal proceeding. These allegations include those concerning the company's staking program, the selling of BNB tokens after the initial coin offering, and infringement of anti-fraud regulations. Some of the claims have been permitted to go on, while others have been rejected by the court that heard them.
allegations Allowed to Proceed: Binance's Staking Program The court has made the decision to go forward with allegations that are associated with Binance's staking program. Those who participate in this program are able to accumulate incentives by holding certain cryptocurrencies.
There will also be a move ahead with claims concerning the sale of BNB tokens following the initial coin offering of the cryptocurrency. In this context, the court will conduct further investigations into the claims made by the SEC.
Anti-Fraud breaches: The court has granted permission for the continuation of claims that are linked to anti-fraud breaches committed by Binance. It would seem from this that the Securities and Exchange Commission has provided adequate evidence to back up these charges.
"Control Person" Allegation: The court has also opted to go forward with the SEC's allegation that Changpeng "CZ" Zhao, the former CEO of Binance, took on the role of a "control person" inside the business.
Claims Relating to BNB Secondary Market Sales Have Been Rejected by the Court The court has ruled that the claims that pertain to BNB secondary market sales have been rejected. The claims made by the Securities and Exchange Commission (SEC) concerning the selling of BNB tokens on the secondary market did not satisfy the conditions set out by the court.
Binance USD (BUSD) Sales: The court has ruled that all claims that were linked to the sale of Binance USD (BUSD), which is the stablecoin that was issued by Binance, have been rejected.
The decision of the court to allow numerous claims to continue is noteworthy, despite the fact that several claims were dismissed. Specifically, it suggests that the Securities and Exchange Commission (SEC) has made a compelling argument against Binance, which raises worries about the exchange's compliance with securities regulations. The court has set a hearing for the 9th of July in order to conduct a more in-depth investigation into the allegations and to collect further evidence.
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