© Reuters
WASHINGTON DC – In a crucial hearing today, Binance, the world’s largest cryptocurrency exchange by trading volume, asked Judge Amy Berman Jackson to dismiss a complaint filed by the Securities and Exchange Commission (SEC) of the United States. The SEC has charged Binance with several violations, including manipulating trading volumes, facilitating trading in what the SEC considers to be unregistered securities under the standards established by the Securities Act of 1933 and precedent of the United States Supreme Court over investment contracts, and providing misleading information regarding its market surveillance protocols.
The allegations against Binance go beyond the current legal action. The SEC also accused the exchange of failing to implement sufficient measures to prevent U.S. customers from accessing its services. These accusations are part of a broader set of fraud complaints filed by the regulator against Binance.
In a related case, Binance has already reached a settlement with the US Department of Justice and the Commodity Futures Trading Commission (CFTC), agreeing to pay $4.3 billion for various financial violations. Furthermore, Changpeng Zhao, the CEO of Binance, admitted that the company had failed to comply with anti-money laundering rules.
Binance is challenging the SEC’s jurisdiction based on traditional, lenient securities laws versus the joint venture’s newer frameworks over market manipulation allegations, which is one of its latest significant legal challenges in the United States.
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