- Also joined by Binance.US (BAM) and Changpeng Zhao
- The company claims that the regulator deliberately misleads the public
- SEC Claims Binance.US Diverted Clients’ Assets When It Hasn’t Been Proven
Cryptocurrency exchange Binance, its US division and Changpeng Zhao have filed lawsuit against the SEC (Securities and Exchange Commission). It alleges that the regulator misled the public by using the unproven fact of misuse of client funds.
The reason for the claim was Press release SEC dated June 17th. In it, the Commission refers to the statement of the representative of the department, Gurbir Grewal:
“Given the fact that Changpeng Zhao and Binance control client assets and can mix or reroute as they see fit, as we have argued previously, this TRO is absolutely necessary.”
The lawsuit, in turn, states the following:
“The SEC has no evidence that the assets of BAM (the parent company of Binance.US) were scattered, mixed, or misused in any way.”
Indeed, during the June 13 hearing, the judge asked the prosecution directly whether such a thing had taken place. To this, the SEC spokesman responded as follows:
“We have not recorded the movement of capital outside the United States.”
Verification from the text transcript can be viewed Here.
Binance, Binance.US and Changpeng Zhao are demanding that the court order the SEC to refrain from making such statements until the case is concluded. It is not yet known when the lawsuit will be heard. Recall that on June 17, a federal judge approved the deal between the department and Binance.US. The division’s assets have not been completely frozen, allowing it to continue operations.