Binance, one of the leading cryptocurrency exchanges, is currently embroiled in a legal battle with the Securities and Exchange Commission (SEC) in the United States. The SEC has accused Binance and its CEO, Changpeng Zhao (CZ), of listing unregistered securities and offerings. However, Binance and its legal team vehemently deny these allegations and have raised concerns about the SEC’s handling of the case.
In a motion filed on June 21, Binance.US, the US arm of the exchange, argued that the SEC has no evidence to support its claims that Binance commingled users’ assets. Commingling refers to the practice of mixing customer funds with the exchange’s own funds, potentially putting investors’ assets at risk.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, stated that Binance and CZ had control over customer assets and could commingle or divert them as they pleased. However, Binance’s legal team emphasized that the SEC’s allegations are baseless and lack supporting evidence.
Allegations of Conflict of Interest and Misleading Statements
Binance’s legal team also made serious allegations against SEC Chairman Gary Gensler, accusing him of a conflict of interest. They claim that Gensler had applied to be an informal advisor to Binance before assuming his current position at the SEC. This alleged conflict of interest raises concerns about the impartiality of the regulatory process and the motivations behind the SEC’s actions against Binance.
Furthermore, Binance criticized the SEC for issuing misleading statements about the handling of customer assets. The exchange argues that these statements could create confusion in the market and potentially harm Binance’s customers. Binance also expressed concerns that the SEC’s press release could influence potential jurors and prejudice the outcome of the case.