Binance and former CEO Changpeng Zhao responded to the U.S. Securities and Exchange Commission’s (SEC) supplemental authorization notice.

Changpeng Zhao, former CEO of Binance Holdings and cryptocurrency exchange, has responded to a supplemental authorization notice issued by the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) regarding Binance’s settlement.

SEC action 'unjustified and impermissible'

In a detailed response filed in the U.S. District Court for the District of Columbia, Binance argued that the SEC’s attempt to introduce the findings of a $4.3 billion plea and settlement agreement with the DOJ was procedurally inappropriate and impermissible. Previously, the media reported on the European Commission’s notice to consider the settlement agreement with the US Department of Justice. SEC authorities believe the findings will strengthen the case against the company and its former CEO.

In response, the company argued that the SEC failed to demonstrate the relevance of the resolution reached with the Department of Justice to any “defective claims” the SEC made against Binance Holdings and Changpeng Zhao. Binance’s SEC lawsuit dates back to June 5, 2023, when the agency filed 13 charges against the company related to violations of securities laws. Among the charges brought by the committee are accusations that Zhao and Binance controlled Binance US’s customer assets and commingled customer assets or transferred customer assets.

SEC seeks to benefit from notices from other agencies

In court documents filed on Tuesday, Dec. 12, 2023, the company said the SEC's notice does not support the claims it made in the June 2023 lawsuit. it says,

"The SEC's notice is an impermissible supplemental brief that does not identify new 'authoritative' evidence but instead attempts to introduce new factual information and arguments, which alone is grounds for disregarding it."

The company added that providing judicial notice was not an alternative to amending the complaint, indicating that there was no notice from any relevant regulatory agency on the part of the SEC. The company said the SEC is working to benefit from resolutions by other agencies.

At the same time, it remains to be seen how the SEC will decide on its assertion that unregistered national securities exchanges, broker-dealers and clearing houses charge operating fees to cryptocurrency exchanges in the context of its request to change U.S. securities laws. #币安 #和解