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Lawyers representing US-based cryptocurrency exchange Binance. US, global exchange Binance Holdings Limited, and Binance CEO Changpeng Zhao (CZ) have filed a lawsuit alleging that the US Securities and Exchange Commission (SEC) misled the public in statements issued in connection with the current securities. claim.
In a June 21st filing in the U.S. District Court for the District of Columbia, Binance Legal Groups, Binance. The US and CZ said the SEC made “misleading” statements in a June 17 press release, and filed a motion with the financial regulator to comply with “current rules of conduct.” The filing mentions SEC Director of Enforcement Gurbir Grewal arguing that CZ and Binance can “combine client assets or channel client assets as they see fit,” as well as an order requiring all parties involved in the lawsuit to return to the United States.
“The SEC has no evidence that the assets of BAM clients [Binance. US] were dispersed, mixed or misused in any way,” the June 21 statement said. “The SEC press release also appears to have been designed to introduce unreasonable market confusion that could harm BAM customers rather than protect them. It also risks tarnishing the jury with misleading descriptions of evidence relating to Defendants.”
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 order, if approved by a federal judge, could prevent the SEC from releasing certain public statements on Binance’s lawsuit while the case is pending, which “may materially impact the litigation.” Binance’s legal team provided part of the transcript of the hearing on June 13, in which an SEC advisor acknowledged that there was no evidence that Binance’s assets. US “go offshore”.
“The SEC press release is misleading, contains statements the SEC knows to be unsupported by evidence and inconsistent with the rules of professional conduct.”
Related: “All SEC claims are untrue” – Binance. US rejects freeze request
The lawsuit was part of an ongoing SEC lawsuit against Binance, Binance. US and CZ, filed June 5, alleging unregistered securities offerings by listing certain tokens and Binance’s refusal to register with a financial regulator as an exchange or broker-dealer clearing agency. SEC Chairman Gary Gensler said at the time that CZ and Binance “misled investors about their risk control” and the regulator pursued money laundering and other sanctions.
The SEC has filed a motion seeking to force the court to freeze all of Binance’s assets. US, but eventually reached a compromise agreement whereby only employees of the exchange would have access to client funds while the lawsuit continues. Amid litigation in the United States, Binance announced the launch of a regulated cryptocurrency platform in Kazakhstan.