In the context of the legal dispute between Binance Holdings and the U.S. Securities and Exchange Commission (SEC), the exchange recently submitted a response to the motion filed by the SEC last week.
The company, led by the now-former CEO Changpeng Zhao, reasserts its position to dismiss the SEC’s lawsuit. The dispute revolves around the SEC’s use of a prior agreement between Binance and the Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN).
The SEC’s allegations against Binance, dating back to June 5, 2023, include 13 violations of securities laws. It is claimed that Zhao and the company handled customer assets on Binance.US and diverted funds. In response, the exchange argues that the inclusion of the outcomes of the guilty plea and the $4.3 billion settlement agreement with the DOJ is inappropriate and lacks merit, as well as logic and legal basis.
The SEC Strikes Against Binance One More Time
In documents filed on December 12, 2023, Binance contends that the SEC’s notice is defective, constituting an impermissible attempt to introduce new information and arguments without foundation. The company asserts that the SEC has not established the relevance of the agreements with the DOJ to the SEC’s presented allegations, dismissing them as “incorrect and defective.”
Furthermore, Binance argues that the agreement with the DOJ and FinCEN does not apply to the SEC’s allegations, and the SEC’s notice does not introduce new evidence. As these legal proceedings unfold, the focus is on Changpeng Zhao, who awaits his sentencing in February 2024 in the United States.
Following Changpeng Zhao’s previously agreed-upon resignation, Richard Teng assumed the position of CEO of the exchange. Teng is an executive with over three decades of experience in financial services and regulation. He has been with the company since 2021. His previous roles as Director of Regulations at the Singapore Exchange (SGX) and Director of Corporate Finance at the Monetary Authority of Singapore provide him with the experience and leadership to navigate the exchange through this complex legal situation.
