Binance.US, the American branch of the renowned global cryptocurrency exchange Binance, is preparing for legal confrontations with the Securities and Exchange Commission (SEC). In a recent announcement, Binance.US has signaled its readiness for a prolonged period of legal exploration.
The SEC has leveled accusations against Binance.US, citing violations of securities laws, the offering of unregistered investment products, and breaches of anti-fraud regulations. Despite these challenges, Binance.US has emphasized its creation with the specific aim of catering to U.S. clientele while adhering strictly to U.S. regulatory standards.
Expressing discontent with the SEC’s regulatory tactics, the centralized cryptocurrency exchange has characterized the federal agency’s approach as “regulation by enforcement.” Binance.US has also pointed fingers at what it perceives as politically motivated actions by the current administration, under the leadership of Chair Gary Gensler.
Confident in its legal position, Binance.US has asserted that the SEC has yet to present any concrete evidence of misconduct on its part. Following an extensive 11-month discovery phase, Binance.US maintains that the SEC’s case lacks factual or legal support.
Despite its confidence, Binance.US was unable to sway a U.S. court to dismiss a majority of the SEC’s allegations in a recent court filing on June 28. Notably, the SEC’s claim that Binance CEO Changpeng “CZ” Zhao acted as a “control person” remained intact, unaffected by Binance’s dismissal attempts.
In a separate development, a phishing scam targeting Hedera users and an incident involving a $70,000 address poisoning were highlighted in a recent crypto-security magazine.