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.

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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’