Binance, Binance.US, CZ Ask Court To Dismiss SEC Lawsuit With Prejudice
Binance Holdings and former CEO Changpeng “CZ” Zhao asked the court to dismiss the U.S. Securities and Exchange Commission (SEC) lawsuit with prejudice in a new filing.
Binance’s subsidiary Binance.US has also submitted a similar filing with the court asking to grant the motion to dismiss the lawsuit as the SEC has failed to allege any investment contract and securities law violations plausibly.
Binance Deems Dismissal of SEC Lawsuit
According to two court filings late December 12, Binance, Binance.US, and CZ submitted their reply to the SEC’s opposition to a motion to dismiss the lawsuit. The SEC asked the court to accept a contorted interpretation of the Howey Test and claimed that any investment with or without an investment contract comes under securities laws.
Binance and CZ lawyers request the court to dismiss the SEC’s claims against Binance and CZ with prejudice. The SEC remained on the sideline for years and now seeks authority over the crypto industry without Congress’ authorization.
They argued the SEC fails to plausibly allege any token, BNB vault, or simple earn is a security, the BNB offering claim is time-barred, the SEC’s arguments impermissibly extend the securities laws overseas. Binance said that the SEC failed to allege personal jurisdiction against Changpeng Zhao and didn’t provide fair notice compel dismissal.
Meanwhile, Binance.US asserts that the SEC failed to allege any products are securities. Moreover, the SEC stated no claim of fraud against Binance.US customers and equity investors.
Also Read: Terra Luna Classic Votes On 800 Million Burn Proposal For LUNC & USTC Rally
The SEC opposed Binance.US’ motion to dismiss the lawsuit, firing back at defendants for claiming to dismiss the lawsuit despite violations under the Howey Test. Also, the SEC refused to accept overreaching to regulate the crypto industry, claiming it has protected investors under the existing securities laws for decades.
Meanwhile, Binance argued that the SEC was being procedurally improper and impermissible in attempting to introduce the findings of the $4.3 billion guilty plea and settlement agreement with the DOJ to this lawsuit.
Also Read: CZ, Binance Say US SEC Claims On DOJ Settlement ‘Irrelevant’
- Experts Say Bitcoin CME Gap Brings Short Term Uncertainty Before Uptober Rally Begins
- MrBeast Expands Holdings in ASTER Token as Revenue Outpaces Hyperliquid by 10x
- Why Is Canary Litecoin ETF Approval by US SEC This Week Crucial for Crypto Market?
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
