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Debashree Patra
Debashree Patra
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- Jul 10, 2024 06:02 UTC
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Binance vs SEC: Here’s Why July 29th Will Be a Game Changer!
The SEC sued Binance in June 2023 for allegedly violating securities laws.
A judge recently dismissed some charges but allowed others to proceed, including those related to Binance's own sales of its BNB token.
The case is ongoing and both sides are expected to submit a proposed schedule for future proceedings.
The legal showdown between the U.S. Securities and Exchange Commission (SEC) and Binance Holdings Limited started with a bang when the SEC filed a lawsuit on June 5, 2023, in the District Court for the District of Columbia.
Overseen by Judge Amy Berman Jackson and Magistrate Judge Zia M. Faruqui, the case zeroes in on allegations under the Securities Exchange Act, focusing on securities and commodities-related issues.
A Major Victory for Binance
Binance scored a significant victory recently when U.S. District Judge Amy Berman Jackson dismissed several charges brought by the SEC against Binance and its founder, Changpeng Zhao (CZ). The dismissed charges pertain to secondary market sales of BNB and the Simple Earn program. However, charges related to Binance’s initial token offering and ongoing sales will still proceed.
Planning the Road Ahead
On July 9, 2024, a critical scheduling conference took place. Judge Jackson ordered both parties to collaborate and submit a joint proposed schedule by July 29, 2024. This schedule is expected to include deadlines for potential motions to amend the complaint, requests for relief from rulings, and details on the discovery process.
As the case’s proceedings and timelines are set, it is anticipated that several motions and orders will be filed under seal, indicating the presence of sensitive information. The case continues to advance, necessitating meticulous planning and cooperation from all parties involved.
SEC’s Allegations: What Are They Saying?
The SEC’s lawsuit, filed in June 2023, accuses Binance and its CEO, Changpeng Zhao, of inflating trading volumes, diverting customer funds, failing to block U.S. customers from its platform, and misleading investors about its market controls. Additionally, the SEC alleges that Binance facilitated the trading of unregistered securities, further complicating its legal standing.
This ruling follows Binance’s recent agreement to pay $4.3 billion to settle charges with the Department of Justice and the Commodity Futures Trading Commission over illegal finance breaches.
Similar allegations have been leveled against other major crypto exchanges such as Coinbase, Kraken, Consensys, and MetaMask, signaling a broad regulatory crackdown on the cryptocurrency industry.
What’s Next?
David Barrera, Co-Founder and CEO of Enumma, suggests there is curiosity about the recent developments in the SEC vs. Binance case. He speculates that the SEC might take further action by either amending its complaint or seeking relief from the court’s recent ruling on the motion to dismiss. This indicates that the SEC may be looking to adjust its legal strategy in response to the court’s decisions.
Stay tuned! The SEC vs. Binance saga continues, with the next chapter hinging on the proposed schedule.
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