- Binance fights SEC allegations and cites lack of evidence in a court motion.
- The exchange challenges SEC’s jurisdiction and demands fair treatment in lawsuits.
- The motion could restrict the SEC from issuing certain public statements.
Binance, Binance.US, and its CEO Changpeng Zhao (CZ) launched an attack on the U.S. Securities and Exchange Commission (SEC), accusing the regulatory body of making “misleading” statements regarding the ongoing lawsuit. The legal teams behind the crypto exchange giants filed a motion in the U.S. District Court for the District of Columbia, urging the SEC to adhere to “applicable rules of conduct.”
Lmao @ Binance v. SEC #FireGensler
Court: “I want to know, are BAM assets going offshore? Is it happening or is it not? It’s stunning to me that I’ve now asked this question to each of the SEC attorneys 5 times.”
SEC: “So currently the assets are not going offshore… We’re not… pic.twitter.com/QkEY5HM2ji
— Tree of Alpha (@Tree_of_Alpha) June 21, 2023
The motion specifically referred to Gurbir Grewal, the SEC Enforcement Director, who allegedly claimed that CZ and Binance could “commingle” and “divert” customer assets as they pleased. Furthermore, the filing highlighted a demand from the SEC for all involved parties to return to the United States, suggesting that the SEC was overreaching its jurisdiction.
Denying the allegations, the filing asserted, “The SEC has no evidence that BAM (Binance.US) customer assets have been dissipated, commingled, or misused in any way.” It further criticized the SEC’s press release, stating that it seemed designed to create unnecessary confusion in the market, potentially harming Binance.US customers rather than protecting them. The document also expressed concerns about the release misleading the public and potentially prejudicing the jury with inaccurate descriptions of the evidence against the defendants.
Should the motion be approved by a federal judge, it could restrict the SEC from issuing certain public statements regarding the Binance lawsuit that may substantially impact court proceedings. The Binance legal team included a transcript excerpt from a June 13 hearing in which the SEC’s counsel acknowledged the absence of evidence suggesting Binance.US assets were being sent offshore.