The U.S. Securities and Exchange Commission (SEC) contends that Binance Holdings Ltd.’s recent $4.3 billion settlement with the Justice Department and other US authorities strengthens the SEC’s own case against the world’s largest cryptocurrency exchange.
SEC Wants to Continue With Its Binance Case
Despite not being part of the settlement, the SEC argued on Friday that the federal court in Washington hearing its case should consider admissions made by Binance and its former CEO, Changpeng Zhao, in the November 21 settlement.
Binance and Zhao have requested the court to dismiss the SEC’s lawsuit. The SEC’s lawsuit, filed in June, accuses Binance and Zhao of mishandling customer funds, providing misleading information to investors and regulators, and violating securities rules.
Furthermore, the SEC countered Binance’s plea stating that it lacks legal substance. The SEC is challenging Binance’s motion to dismiss, claiming that the exchange’s defense is based on misinterpretations of the law.
According to the SEC, Binance’s argument poses a threat to long-established precedents crucial for the operation of the nation’s securities laws. They contend that Binance’s approach suggests a rigid framework that is incompatible with the existing legal system.
US Judge Wants CZ to Stay in the US
After former Binance CEO Changpeng Zhao (CZ) entered a guilty plea, U.S. District Judge Richard Jones ruled on December 7, 2023, that CZ must remain in the United States until sentencing, as per a court filing.
The judge has barred Changpeng Zhao from returning to his residence in the United Arab Emirates until the completion of the sentencing for a felony crime in the U.S. As part of the plea deal, Zhao, who resigned as Binance’s CEO, potentially faces up to 10 years in prison but is anticipated to receive a maximum sentence of 18 months.
Additionally, he agreed to a $50 million fine. The recent ruling on Thursday overturned a previous decision by a U.S. magistrate judge that had permitted Zhao to return to the United Arab Emirates.
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