Binance Faces SEC Lawsuit Over Unregistered Securities, Court Proceeds with Some Claims

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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source:
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