The American division of the Binance cryptocurrency exchange, Binance.US, is preparing for a new fight with American regulators.

Table of Contents

U.S. court allows SEC to continue case against Binance

What the experts say

Binance’s legal proceedings with American regulators

How the lawsuit against Binance affected the crypto market

Binance.US released a statement declaring its readiness to continue to fight the U.S. Securities and Exchange Commission (SEC). The platform team recalled that the court ruled that the regulator’s case against Binance.US will be continued.

“We were prepared for this and look forward to having this case move forward in the judicial process.”

Binance.US statement

The team reminded that Binance.US was founded to serve clients according to U.S. rules and regulations. Additionally, the platform claims to have used the SEC’s limited guidance to the industry to conduct business in compliance.

“We, like many companies in our industry, have fallen victim to the SEC’s regulation by enforcement approach and politically motivated overreach under its current leadership.”

Binance.US statement

Binance.US emphasized that the SEC has yet to identify any evidence of wrongdoing by the exchange during its 11-month process. Therefore, the SEC’s case must be supported by the facts or the law, and the Commission needs more authority to bring a claim.

“Our business is on strong footing, and our commitment to giving Americans access to digital assets remains unchanged. The fight continues.”

Binance.US statement

U.S. court allows SEC to continue case against Binance

On June 28, the U.S. court rejected Binance’s motion to dismiss the SEC case on most counts. The exchange failed to convince a U.S. court to dismiss most of the charges brought against it by the SEC.

Judge Amy Berman Jackson granted the exchange’s request to withdraw the regulator’s claims regarding secondary sales of the BNB token, the BUSD stablecoin offering, and the Simple Earn product. The SEC’s investigation will continue into the ICO and subsequent sales of the BNB platform, the BNB Vault program, failure to register, and failure to comply with anti-fraud regulations. The same goes for the staking service on Binance. 

Additionally, SEC charges against former Binance CEO Changpeng Zhao remain in force. The regulator argues that it acted as a “controlling person” and that the trading platform was required to register under the Exchange Act.

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What the experts say

Despite the court’s decision, lawyer Scott Johnson called Berman Jackson’s ruling a “big defeat” for the regulator.

Wow, big loss for the SEC in Binance re: secondary sales. I was expecting this type of analysis from Failla, but Berman seems to have given it instead. pic.twitter.com/5vPPew4WLl

— Scott Johnsson (@SGJohnsson) June 29, 2024

Fox Business journalist Eleanor Terrett expects that lawyers from Coinbase, Kraken, and Consensys will use the latest decision in the SEC case against Binance. This will significantly strengthen their position in litigation initiated by the regulator.

You can fully expect @coinbase, @krakenfx and @Consensys lawyers to use this opinion to bolster their positions in their own litigations.And the @SECGov lawyers can no longer argue that the @Ripple ruling was merely an outlier that no other judges agree with. https://t.co/xC4VOtJvOX

— Eleanor Terrett (@EleanorTerrett) June 29, 2024

Binance’s legal proceedings with American regulators

On June 5, 2023, the SEC filed a lawsuit against Binance, Zhao, and several affiliated companies for violating securities trading regulations. It follows from the court document that the Commission recognized the BNB token and the BUSD stablecoin, which bears the exchange’s brand, as securities.

Binance emphasized its intention to defend itself against the SEC’s charges. The exchange blames the agency for the lack of productive interaction and failure to provide clarity and guidance to the digital assets sector.

You might also like: Binance under fire: prosecutors eye 5-year oversight

However, in November 2023, Binance settled the claims of the U.S. Department of Justice (DOJ) regarding violation of the sanctions regime and money laundering, agreeing to pay $4.3 billion. The fine for Zhao personally amounted to $50 million. 

In December 2023, the regulator published a series of documents containing, among other things, previously undisclosed evidence and admissions of guilt by the trading platform. The SEC took notice and stated that it plans to continue legal proceedings against Binance despite the settlement with the DOJ.

According to regulator representatives, the federal court should consider all statements and admissions made by the exchange and Zhao on Nov. 21, 2023. For example, in an agreement with the DOJ, the crypto exchange admitted that it knowingly violated the law. However, in the SEC case, the platform argued that the Commission never notified it of non-compliance with the securities regulations.

How the lawsuit against Binance affected the crypto market

Legal problems have affected Binance’s market position. Binance claims the SEC is overreacting, and its former CEO, Zhao, defends the company’s practices. However, the cryptocurrency market remains cautious as it watches these legal proceedings unfold.

SEC continues to take enforcement action against crypto firms. SEC Chairman Gary Gensler argues that most digital assets are unregistered securities and that the regulator is committed to regulating the industry. 

This ongoing lawsuit against Binance is part of a broader crackdown on the crypto industry. As the lawsuit continues, its outcome will likely have severe consequences for Binance and the wider cryptocurrency market.

You might also like: Binance.US under SEC scrutiny for alleged non-compliance in asset custody probe

A federal judge overseeing the U.S. Securities and Exchange Commission's case against Binance ruled that most of the case can proceed, but dismissed charges tied to the sale of BUSD and secondary sales of BNB.

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Secondary sales

The narrative

Late Friday, Judge Amy Berman Jackson from the U.S. District Court for the District of Columbia ruled that the Securities and Exchange Commission had brought plausible allegations against Binance, Binance.US and Changpeng Zhao, refusing to dismiss most of the charges against the companies. She did, however, dismiss a charge tied to secondary sales of BNB by sellers who aren't Binance, a charge tied to the sale of BUSD and a charge tied to Binance's "Simple Earn" product.

Why it matters

One question around the application of securities law to cryptocurrencies is whether secondary sales are also investment contracts. We've seen a few rulings from district courts, but nothing from appeals courts yet.

Breaking it down

Judge Jackson's ruling mostly maintained the current status quo in terms of litigation around crypto and securities – she ruled that the major questions doctrine does not apply, that the SEC's arguments are (mostly) plausible and that there is a reasonable case to be made based on the facts as alleged.

It's an interesting ruling that everyone will likely pull from. In a blog post on Tuesday, Binance mostly reiterated the court's ruling and said it "recognizes there are critical limits on the SEC's regulatory authority over the crypto industry."

The judge's ruling did allow most of the charges to move forward, including counts tied to the BNB initial coin offering and Binance's own ongoing sales of the token; the BNB Vault; Binance.US's staking service; Exchange Act violations (both registration and control person allegations); and anti-fraud provisions under the Securities Act.

I imagine we'll learn more about the arguments around those charges as the case proceeds. In the nearer-term, the judge's ruling on secondary sales by sellers other than Binance – she dismissed this charge – and stablecoins (well, one stablecoin) – she dismissed a charge here too – are already being hailed within the crypto industry.

The judge pointed to transcripts from various hearings in her ruling, noting that SEC attorneys said in court that they are not taking the position that a token on its own is a security but saying that, in her view, the SEC seemed to still take the position that if a token's initial sale carried marketing materials or other factors that suggested it was a security, those factors would continue to apply through future sales (see footnote 15).

"Insisting that an asset that was the subject of an alleged investment contract is itself a 'security' as it moves forward in commerce and is bought and sold by private individuals on any number of exchanges, and is used in any number of ways over an indefinite period of time, marks a departure from the Howey framework that leaves the Court, the industry, and future buyers and sellers with no clear differentiating principle between tokens in the marketplace that are securities and tokens that aren’t," the judge wrote.

However, the judge seemingly left the door open for other arguments in future cases around secondary transactions, writing in subsequent paragraphs that "more is needed" to support the SEC's arguments about ongoing sales of tokens. Indeed, the judge said in a few places that one big issue may be that the SEC just didn't have enough in its filings or oral arguments at this time.

On Monday, attorneys for Coinbase filed notices in both the SEC case against the exchange and the exchange's appeal for rulemaking including Friday's decision.

In its letter to Judge Katherine Polk Failla, who's overseeing the SEC case against Coinbase, the exchange's attorneys argued that Friday's decision supports its motion for an interlocutory appeal – the exchange wants an appeals court to rule on how secondary trades fit into the definition of an "investment contract" – because it goes against the SEC's arguments against such an appeal.

"The Binance decision compounds the confusion for the industry and its customers. Two learned district courts, analyzing economically identical transactions on two of the largest crypto trading platforms in the United States, have reached diametrically opposed views as to whether those transactions may constitute securities transactions," Coinbase's notice said. "The result of the SEC’s litigation-focused approach to crypto regulation is that market participants now face different rules, not only in different courts in this District, but in different federal courts around the country."

In a response on Wednesday, SEC attorneys wrote that Friday's decision supports Judge Failla's ruling on Coinbase's original motion for judgment and supports rejecting the motion for interlocutory appeal.

Friday's ruling highlighted the role of the Howey Test and that the question around secondary transactions was facts and circumstances-based, the SEC team wrote.

"Moreover, in concluding that the SEC had not sufficiently pled that certain secondary sales of BNB were investment contracts, the Decision made clear that this ruling was based on the particular facts pled in the complaint then before it," the SEC attorneys wrote. "... Contrary to Coinbase's contention here, the Decision made no general pronouncement as to whether 'secondary market crypto transactions were investment contracts under Howey.'"

The ruling, in other words, doesn't have any effect on the allegations the SEC brought against Coinbase or the digital assets the SEC alleged were securities in its complaint, the regulator said.

SCOTUS

Of course, there's also a broader backdrop to this whole thing. In the last few days, the U.S. Supreme Court published three significant decisions that may affect the crypto industry's relationship with federal regulators moving forward. The first, on Thursday, was its ruling in SEC v. Jarkesy, wherein the high court ruled that the SEC and other federal regulators couldn't use in-house administrative proceedings to hear cases.

CoinDesk's Cheyenne Ligon reported that there haven't been that many cases in the crypto industry that were resolved through these administrative proceedings so far, so this may not have too big an impact.

On Friday, the Supreme Court overturned the 40-year-old Chevron Deference precedent, ruling that the earlier Supreme Court had created an "unworkable" doctrine.

And on Monday, the Supreme Court ruled that there is no statute of limitations on when private parties can sue a federal agency's rulemaking, which might confound the industry's hopes of forcing the SEC to craft crypto-specific rules.

Stories you may have missed

Ahead of the U.K. Election, Major Parties Remain Silent on Crypto Issues: The U.K. is hosting its next election on July 4, with the Labour Party – currently the opposition party in Parliament – set to win enough seats to appoint a new prime minister. As with other elections in Europe, crypto has not really taken up much attention.

Marine Le Pen's Far-Right National Rally Party Leads in First Round of French Election: France is holding a two-part election, with the first part concluding earlier this week. Round two will take place on July 7.

Crypto-Friendly Silvergate Bank Pays $63M to Settle Charges With SEC, Fed, California Regulator: Silvergate Bank settled charges with the Securities and Exchange Commission, Federal Reserve and California Department of Financial Protection and Innovation, agreeing to pay a total of $63 million against allegations of misleading customers and investors.

Crypto Unmentioned at First 2024 U.S. Presidential Debate: I know this will come as a shock to all of you but neither the moderators, U.S. President Joe Biden or former President Donald Trump mentioned crypto during last week's presidential debate.

This week

Thursday

In the U.K., it's election day. In the U.S., it's Independence Day. Everywhere else, it's (probably) just Thursday.

Elsewhere:

(TechCrunch) Evolve Bank and Trust was hit by what appears to be a ransomware attack that's led to customer information being shared online. There's a number of odd storylines developing as a result of this breach.

(CNBC) Synapse, a financial technology intermediary, filed for bankruptcy, announcing it held some $180 million in assets associated with customer accounts against $265 million in obligations tied to those accounts.

(CNBC) CNBC spoke to some of Synapse's customers, reporting that while a bank customer might be protected against bank collapses by the Federal Depository Insurance Corporation, fintech customers enjoy no such protection.

If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at nik@coindesk.com or find me on Twitter @nikhileshde.

You can also join the group conversation on Telegram.

See ya’ll next week!

Court upholds SEC’s initial claims against Binance.US and CEO CZ.

Binance.US insists SEC found no evidence in 11-month discovery.

Legal battle to impact U.S. crypto exchange operations.

Binance.US is gearing up for a long fight with the Securities and Exchange Commission (SEC). The company announced that the court ruled in favor of the SEC’s lawsuit regarding suspected potential infringement on the securities law. 

The company stated it was prepared to actively take part in the legal process of discovery, which was declared last Friday.

On Friday, the Court decided that the SEC’s case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United…

— Binance.US (@BinanceUS) July 1, 2024

Legal Position of Binance.US

Designed with the American client in mind, the exchange ensures complete reserves of all customer assets. Moreover, the organization has established extensive controls for compliance and risk management. These efforts are for the safety, security, and overall integrity of their platform. 

This is not the first time the exchange took issue with the SEC’s regulatory approach, characterizing it as “regulation by enforcement.” In any case, Binance.US termed the policy hyper-aggressive and politically charged under the aegis of new SEC Chair Gary Gensler. 

However, the company remains optimistic about its legal standing. It insists that after months of an 11-month-long discovery process, the agency hasn’t found any evidence supporting its allegations.

Legal Proceedings and Company Outlook

Despite Binance.US being in a solid defense, a recent court ruling came out, which upheld most of the SEC accusations, including on CEO Changpeng “CZ” Zhao. The company’s lawyers have refuted the accusations as baseless and falling far off the mark of merit and facts. 

However, the court did not dismiss key accusations but upheld the determination being done on the ongoing legal proceedings. Binance.US is still confident and booming when it goes through the challenges given by the current regulatory environment that deals with the SEC. 

The case’s outcome may have various effects on the crypto business in the United States and, most importantly, the operation of the crypto exchanges within the regulated boundaries.

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BinanceUS Reverses Decision: No Removal of USDT Advanced Trading Pairs

The post Binance.US Prepares for Prolonged SEC Legal Battle appeared first on Crypto News Land.

Binance.US said that it is prepared to defend itself against the US Securities and Exchange Commission after a court ruled that the regulatory agency’s case against the crypto exchange could continue.

In its official statement on X, the US arm of crypto giant Binance affirmed that the “fight continues.”

Binance.US Slams SEC’s Enforcement Tactics

The crypto exchange said that it has used the “limited guidance” that the SEC has offered to the crypto industry to operate its business in a compliant way. Binance.US also slammed the SEC’s regulation-by-enforcement strategy and accused the regulatory body of politically motivated overreach under its current leadership.

The company also said that it maintains 1:1 reserves for all customer assets and has strong compliance and risk programs that ensure the safety and security of its platform.

“We remain confident in our position that the SEC’s case is unsupported by the facts or the law and that the Commission lacks the very authority it is seeking to wield in bringing its action against us. We believe this position will be validated by the Court in due course.”

Binance.US vs SEC

Last June, the SEC filed a lawsuit against Binance Holdings Ltd., BAM Trading Services, BAM Management US, and founder Changpeng “CZ” Zhao, accusing them of violating the US securities laws.

The securities watchdog also alleged that employees of the global Binance entity outside the US could improperly access and control Binance.US customer assets. Binance.US, on the other hand, maintained that the SEC has yet to identify any evidence of wrongdoing on the part of the exchange throughout the extensive, 11-month discovery process.

In September, Binance contested the SEC’s claim and requested the dismissal of the case, arguing that the latter was overreaching its jurisdiction to foreign crypto transactions. However, Judge Army Berman Jackson of the US District Court for the District of Columbia ruled that the majority of the SEC’s lawsuit could proceed. Out of 13 counts, 10 will fully proceed, two will partially proceed, and one will be dismissed.

The post Binance.US Claims No Evidence of Wrongdoing in SEC Case appeared first on CryptoPotato.

Coinspeaker Binance.US Set to Face SEC Lawsuits

Binance.US, the United States arm of leading cryptocurrency exchange Binance has voiced readiness to take on the Securities and Exchange Commission (SEC) in its lawsuit. Binance.US revealed its position about the Friday Court ruling in an X post where it stated that it “looks forward” to the SEC case moving to further discovery.

“Notably, the SEC has yet to identify any evidence of wrongdoing on the part of Binance.US throughout the extensive, 11-month discovery process in which we have participated to date,” the top digital asset service provider wrote on X.

Federal Judge Ruling on SEC vs Binance.US

Noteworthy, Judge Amy Berman Jackson dismissed part of the SEC lawsuit against Binance.US last week while she allowed some others to proceed. One of the dismissed cases is the SEC’s claim that BNB is traded illegally on secondary markets. The other dismissed charges are that all sales related to the Binance USD (BUSD) stablecoin and the SEC’s claims related to Binance’s passive income feature “Simple Earn”.

The upheld charges have to do with claims against Binance’s staking scheme, the sale of BNB after its initial coin offering, and anti-fraud. This is in addition to charges against Changpeng ‘CZ’ Zhao, as a “control person”. Generally, the charges that were left to proceed centered around sales of unregistered investment products and violation of anti-fraud provisions.

Binance.US’ X post is in response to this decision from Judge Jackson.

On Friday, the Court decided that the SEC’s case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United…

— Binance.US 🇺🇸 (@BinanceUS) July 1, 2024

The exchange highlighted how it has constantly put in intentional effort and “limited guidance” provided by the SEC to comply with regulations. It went on to talk about how unfortunate it is that the exchange has fallen victim to the Commission’s regulation-by-enforcement approach.

The SEC Suit against Binance and CZ

Like a couple of other crypto exchanges, Binance and its then-CEO Changpeng Zhao were indicted by the SEC in June 2023. The regulator listed some charges against the trading platform including the sales of unregistered investments. Similarly to FTX, Binance was accused of commingling company and customer assets, misuse of customer funds, and possible market manipulation of native tokens.

Consequently, the regulator requested immediate “verified” accounting of Binance and Binance.US’s finances. It also asked that Binance assets be frozen and repatriated. The SEC asked for Binance.US document preservation and the appointment of a receiver for Binance assets. At the time, the exchange noted that the regulator only wanted to make headlines with the charges.

Apart from the SEC, Binance also faced regulatory challenges with the US Department of Justice (DOJ), a case that eventually led to its leadership restructuring. The DOJ brought up allegations of money laundering, bank fraud, and the violation of US sanctions laws against the exchange and requested $4.3 billion as a settlement.

Also, CZ pled guilty to the charges levied against him and stepped down from his position as CEO of the exchange. He is currently serving a four-month jail term.

next

Binance.US Set to Face SEC Lawsuits

Binance, a leading cryptocurrency exchange, recently announced modifications to its operations in Turkey. The changes include the phasing out of the Turkish-language option on its platform over the next three months and the suspension of all direct marketing activities to users in the region.

These updates are part of Binance’s ongoing efforts to maintain transparency and ensure regulatory compliance.

Impact on Turkish Users

The decision to remove the Turkish-language interface could alter how Turkish users interact with the Binance platform. However, the company assures its customers that the safety of their funds remains a priority, and that deposit and withdrawal functions will continue to operate without interruption.

Binance has been closely monitoring regulatory developments in Turkey and asserts its commitment to working with regulators across various jurisdictions to foster a compliant business environment.

Source: Binance

In a related development, Tether, known for issuing the Tether stablecoin, is expanding its presence in Turkey through a partnership aimed at promoting industry knowledge. On July 2, Tether announced a memorandum of understanding (MoU) with BTguru, a local cryptocurrency platform.

BTguru, which serves mainly banking institutions, will collaborate with Tether to potentially develop educational programs about the benefits of cryptocurrencies and blockchain technology for both private and public entities in Turkey.

This agreement also includes exploring the use of peer-to-peer (P2P) technology and the tokenization of real-world assets for banks. Furthermore, Tether and BTguru will evaluate scenarios for regional payment networks, leveraging BTguru’s connections with financial institutions within the country.

The expansion comes at a time when cryptocurrency adoption is rapidly increasing in Turkey. According to Binance’s data, Turkey is a significant player in the global crypto ecosystem, ranking fourth in transaction volume and twelfth in adoption rates, with 40% of its population engaged in cryptocurrency transactions.

Additionally, purchases of stablecoins in Turkey account for 4.3% of the country’s gross domestic product (GDP), the highest percentage among global economies, as reported by Chainalysis.

Binance’s Global Regulatory Challenges

Meanwhile, Binance continues to face regulatory challenges in other parts of the world, similar to other major exchanges like Coinbase. The firm has been actively involved in discussions with U.S. regulators, advocating for a robust regulatory framework for cryptocurrencies in the region.

However, Binance was one of the exchanges targeted in the U.S. Securities and Exchange Commission’s (SEC) 2023 crackdown on cryptocurrency operations.

The SEC has levied several charges against Binance, including operating as an unregistered broker and misusing customer funds, along with allegations of possible market manipulation of its native tokens.

Former Binance CEO Changpeng Zhao

The company’s founder, Changpeng ‘CZ’ Zhao, stepped down as CEO last year and is currently serving a four-month jail term. Zhao pleaded guilty to charges related to violating Anti-Money Laundering (AML) rules.

In Nigeria, Binance is also encountering legal issues, with two of its executives embroiled in conflicts with local authorities, resulting in restricted services in the country.

These strategic adjustments in Turkey, coupled with ongoing legal challenges in the U.S. and Nigeria, reflect Binance’s complex navigation through the regulatory landscapes of its operational territories.

While the changes in Turkey might hint at a possible gradual withdrawal from the region, they underscore the exchange’s broader strategy of compliance and adaptation in response to global regulatory dynamics.

The post Binance Complies with Turkish Regulations with New Changes appeared first on Coinfomania.

Binance US said it’s prepared for discovery in a legal battle with the SEC.

A U.S. federal judge recently dismissed part of the SEC’s lawsuit against Binance and its founder CZ.

Binance US, the American arm of the giant cryptocurrency exchange, is prepared for an extended legal battle with the Securities and Exchange Commission (SEC). The company emphasizes its commitment to regulatory compliance while criticizing the SEC’s approach to enforcement.

Despite a prolonged 11-month discovery process, the US entity claims that the SEC has yet to identify evidence of any wrongdoing by the US entity. The company is ready for the upcoming phase of the legal proceedings, as indicated in a recent post on X (formerly Twitter), expressing eagerness for further discovery.

This development follows a U.S. federal judge’s Friday decision to dismiss some SEC’s lawsuit against Binance and its founder, Changpeng Zhao. However, most of the charges against Binance US were remain. These charges include the potential offering of unregistered investment products and violations of anti-fraud regulations.

In its statement, Binance US reiterated its commitment to follow the SEC’s limited guidance to remain compliant. The SEC initially filed the lawsuit in June 2023, accusing Binance, Binance US, and Zhao of various securities law violations. Notably, Zhao is currently serving a jail sentence for charges brought by the Department of Justice.

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Binance US said that it was already prepared for Friday’s court ruling that the SEC will continue against the exchange and that it looks forward to the case moving to further discovery. It has noted that the SEC has yet to identify any evidence of wrongdoing on the part of Binance.US throughout the extensive, 11-month discovery process. Binance’s response comes after a U.S. federal judge on Friday dismissed part of the SEC’s lawsuit against Binance and Changpeng Zhao, but upheld most of the agency’s charges against Binance US.

Binance.US, the American arm of the global crypto exchange Binance, is gearing up for a protracted legal conflict with the U.S. Securities and Exchange Commission (SEC). 

Following a recent court decision allowing the SEC’s case to proceed, Binance.US emphasized its readiness for a lengthy period of legal discovery. In a statement released on social media platform X, the company expressed its anticipation of proceeding with the judicial process, demonstrating its commitment to compliance.

On Friday, the Court decided that the SEC’s case against https://t.co/AZwoBOh0gq will continue. We were prepared for this and look forward to having this case move forward in the judicial process.https://t.co/AZwoBOh0gq was established with the express purpose of serving United…

— Binance.US (@BinanceUS) July 1, 2024

The SEC’s allegations against Binance.US include securities law violations, offering unregistered investment products, and anti-fraud breaches. Despite these serious charges, Binance.US maintains that it was specifically created to serve U.S. customers while adhering to local regulations. The company asserted, 

“We maintain 1:1 reserves for all customer assets and have robust compliance and risk programs which ensure our platform’s safety, security, and integrity.”

Criticism of SEC’s Regulatory Approach

In addition to outlining its commitment to compliance, Binance.US criticized the SEC’s approach to regulation. The company described the SEC’s actions as “regulation by enforcement,” suggesting that the federal agency’s tactics are politically motivated. Binance.US claimed that many firms in the crypto industry have similarly fallen victim to what it perceives as the SEC’s overreach under its current leadership, led by Chair Gary Gensler.

Binance.US also addressed the challenges posed by the SEC’s actions, stating that the regulator still needs to identify concrete evidence of wrongdoing on the part of the exchange. The firm expressed confidence in its legal position, asserting that the SEC’s case is “unsupported by the facts or the law” following an 11-month discovery process.

Despite Binance.US’s confidence, the company was unable to convince a U.S. court to dismiss most of the SEC’s claims in a June 28 court filing. Judge Amy Berman Jackson ruled that claims related to Binance’s staking program, the sale of BNB after its initial coin offering, and anti-fraud violations will proceed. Additionally, the allegation that Binance CEO Changpeng “CZ” Zhao acted as a “control person” will continue to be part of the case.

However, the court did dismiss some of the SEC’s claims. Specifically, claims related to BNB secondary market sales and all sales associated with the Binance USD (BUSD) stablecoin were dismissed. This partial dismissal provides a slight reprieve for Binance.US in its ongoing legal struggle.

Commitment to U.S. Regulations

Binance.US reiterated its dedication to U.S. regulations, emphasizing its role in providing services to American customers within the legal framework. The company stressed that it maintains a high standard of compliance and risk management to ensure the security and integrity of its platform. This commitment is central to Binance.US’s defense against the SEC’s allegations and strategy in the upcoming legal proceedings.

The post Binance.US Prepares for Extended Legal Battle with SEC appeared first on Coinfomania.

Major SEC Case Against Binance and CZ Zhao Moves Forward

YEREVAN (CoinChapter.com) — A significant portion of the Securities and Exchange Commission’s (SEC) lawsuit against Binance and its co-founder Changpeng “CZ” Zhao will continue, following a recent ruling. The lawsuit, filed last year, accused Binance of mishandling customer funds, misleading investors, and violating securities laws.

SEC Charges Binance and Zhao. Source: SEC Press Release

Defendants sought to dismiss the case, but Judge Amy Berman Jackson ruled late Friday that out of 13 counts, 10 will proceed entirely, and two partially, with one count dismissed.

SEC vs. Binance Court Order. Source: US District Court for the District of Columbia SEC Dismisses BUSD and BNB Sales Claims, Scrutiny of Binance Continues

The count dismissed pertains to the sales of BUSD, a stablecoin now nearly defunct after regulatory actions. Stablecoins are typically pegged to fiat currencies like the US dollar, backed by cash and bonds. This dismissal narrows the scope of the lawsuit but leaves significant allegations intact.

BUSD Price Volatility Chart. Source: CoinGecko

The ruling also partially dismissed parts of a count regarding the sales of BNB, a token integral to the Binance ecosystem. Specifically, the dismissed portion relates to secondary sales of BNB by parties other than Binance. BNB remains a major player in the crypto market, with a market value of about $87 billion, ranking as the fourth-largest digital asset according to CoinGecko.

Top 8 Cryptocurrencies by Market Cap Source: CoinGecko

An allegation concerning Binance’s Simple Earn program was also partially dismissed. Simple Earn allows investors to lend tokens and earn interest. However, the core of the count remains, continuing the scrutiny on Binance’s business practices.

Binance’s Legal Battles: $4.3 Billion Penalty and More

Binance’s legal challenges are not new. In November, the exchange faced a landmark $4.3 billion penalty in a plea deal with the Justice Department and US regulators over violations of anti-money laundering and sanctions laws. Following this, Changpeng Zhao was sentenced to four months in jail. The SEC was not part of this plea agreement.

CZ’s Sentencing and Crypto Bullrun Anticipation. Source: Futurist Kwame Gensler Targets Crypto Industry

Under Chair Gary Gensler, the SEC has maintained that most digital tokens are unregistered securities subject to its regulation. Gensler has been vocal about his criticism of crypto exchanges and the digital asset industry for alleged noncompliance with securities laws. Despite numerous SEC lawsuits, the question of whether digital tokens are securities remains unresolved, with clarifying legislation from Congress still pending.

Adding to the SEC’s regulatory approach, the agency recently accused Consensys Software Inc. of failing to register as a brokerage and improperly collecting millions in fees. Consensys has disputed these claims, reflecting the ongoing tension between the SEC and the crypto industry.

The ongoing case, presided over by Judge Jackson, is officially titled SEC v. Binance, 23-cv-01599, in the US District Court for the District of Columbia.

The post Major SEC Case Against Binance and CZ Zhao Moves Forward appeared first on CoinChapter.

A court ruling has allowed the SEC to pursue claims associated with Binance’s BNB staking program.

Judge Jackson, however, dismissed SEC’s claims that secondary sale of Binance coins qualified as securities.

In a decision issued late Friday, a Federal judge has allowed the majority of a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against Binance [BNB], the world’s largest cryptocurrency exchange, to proceed.

Judge’s Orders

Judge Amy Berman Jackson of the District Court for the District of Columbia issued a ruling that allows most of the SEC’s charges against Binance to proceed.

These charges include violations related to the initial coin offering and ongoing sales of BNB, their BNB Vault and staking services, as well as a failure to register and potential fraudulent activity.

This decision is a blow to Binance, as it suggests the court believes the SEC has a strong case regarding these specific offerings and actions.

However, the judge did grant Binance and its founder, Changpeng Zhao, dismissal of charges tied to secondary sales of BNB and their Simple Earn program.

This lawsuit originated last summer when the SEC accused Binance, Binance US, and Zhao of offering unregistered securities and financial services within the U.S.

This case is part of a larger trend, as the SEC has brought similar charges against other major cryptocurrency companies like Coinbase, Kraken, and most recently, Consensys and MetaMask.

These actions highlight the growing regulatory scrutiny surrounding the cryptocurrency industry.

Comparisons In The Past

The Judge referenced previous court rulings that carefully distinguish between investment contracts which are considered securities and the underlying tokens themselves.

This distinction aligns with the Supreme Court’s definition of a security.

It’s important to note that this SEC case is separate from the criminal charges brought against Binance founder Changpeng Zhao by the Department of Justice and Treasury Department, for which he is currently serving a 4-month sentence.

Additionally, the judge, like others, rejected arguments that the SEC lacks authority due to the “major questions doctrine.”

This doctrine requires clear Congressional authorization for agencies to regulate significant industries, but crypto’s relative novelty presented a legal gray area.

By rejecting this argument, Judge Jackson strengthens the SEC’s ability to pursue enforcement actions in the cryptocurrency space.

How is BNB Doing?

At press time, BNB was trading at $574.38 and its price had grown by 0.53% in the last 24 hours. The volume at which it was trading at had decreased by 10.47%.

After dismissing part of the United States Securities and Exchange Commission’s (SEC) lawsuit against crypto exchange Binance and its founder Changpeng Zhao, a federal judge has allowed other charges against the leading cryptocurrency exchange to proceed. Judge Amy Berman Jackson, who is presiding over the case, has scheduled a hearing for July 9, 2024.

Judge Cites Ripple vs. SEC Ruling

One of the dismissed charges is the SEC’s claim that BNB is traded illegally on secondary markets. The judge cited her colleague’s ruling in the Ripple vs. SEC case as precedent to dismiss the SEC’s BNB secondary market sales claim. Noteworthy, Judge Analisa Torres pronounced on July 13, 2024, that XRP does not qualify as securities. 

Other dismissed charges are all sales related to the Binance USD (BUSD) stablecoin and the SEC’s claims related to Binance’s passive income feature “Simple Earn.”

Binance Seek Dismissal of SEC Claims

Since the beginning of this year, Binance has been focused on the dismissal of the U.S. SEC fraud lawsuit against it. However, it was unable to persuade Judge Jackson to dismiss the majority of accusations. The judge decided that claims against Binance’s staking scheme, the sale of BNB after its initial coin offering, and anti-fraud will proceed.

Also, Judge Jackson decided that charges against Zhao, as a “control person,” and Binance’s duty to register under the Exchange Act will equally proceed, according to the court filing from June 28. Noteworthy, Zhao stepped down from his position as CEO of the exchange last year and is currently serving a 4-month jail term.

Judge Jackson’s Decision Sets Precedent For Coinbase, Kraken And Consensys 

The position of the court on the charges took finance lawyer Scott Johnsson by surprise, as he described it as a “big loss” for the securities regulator. In the long run, this verdict on the lawsuit is likely going to set a precedent for crypto exchanges like Coinbase, Kraken, and Consensys. 

These entities could “use this opinion to bolster their positions in their own litigations,” Fox Business reporter Eleanor Terrett opined. In its case with ConsenSys, the Commission recently dropped its probe into whether Ethereum (ETH) is a security. However, ConsenSys is still requesting a precise regulatory framework for the crypto industry.

The post Federal Judge Gives Split Win In SEC Vs Binance Lawsuit appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.

Judge dismisses SEC charges against Binance and CZ, clearing legal hurdles and potentially impacting the crypto market.

Analyst predicts Bitcoin price surge to $150,000-$200,000 by 2025 after Binance’s legal victory.

Chart shows Bitcoin’s rise from $10,000 in 2020 to $150,000 by 2025, with a recent strong upward trend and a potential end of bear trap.

In a recent legal development, U.S. District Judge Amy Berman Jackson has dismissed several charges brought by the Securities and Exchange Commission (SEC) against Binance Holdings Limited and its founder, Changpeng Zhao (CZ). The dismissed charges pertain to the secondary market sales of Binance Coin (BNB) and the Simple Earn program, marking a significant moment in the ongoing legal battle between the SEC and Binance.

BREAKING:Judge dismisses SEC charges against Binance and CZ

— WhaleFUD (@WhaleFUD) June 29, 2024

Legal Victory for Binance

This ruling comes as a victory for Binance and CZ, potentially influencing the broader crypto market. Analysts are closely watching this case, and some have linked this legal win to the recent potential bullish trends in the Bitcoin market. The dismissal of charges provides a clearer regulatory path for Binance, which could impact its operations and the wider crypto industry.

Bitcoin Market Reaction

Analyst Ash Crypto on X has suggested that this development might mark the end of the bear trap, propelling Bitcoin towards an epic breakout. The analyst shared a chart illustrating a projected upward trend for Bitcoin, with prices potentially reaching between $150,000 and $200,000 by early 2025.

#Bitcoin pump will MELT faces This will be the End of Bear Trap. Then prepare for the Epic breakout towards $150,000 – $200,000. pic.twitter.com/Ye1xGorv2X

— Ash Crypto (@Ashcryptoreal) June 29, 2024

Chart Analysis and Projections

The chart shared by Ash Crypto indicates a upward trend, particularly in the latter part of the timeframe from 2020 to early 2025. It shows Bitcoin’s price rising dramatically from around $10,000 in 2020 to peaks well above $150,000 by 2025. 

A strong upward movement in recent months is highlighted, with the price nearly doubling. Annotations include a horizontal line indicating previous resistance or support levels and a “BEAR TRAP” annotation suggesting a false downward movement before the sharp rise.

Source: Ash Crypto

Future Implications

While this chart projects a highly bullish period for Bitcoin, it is essential to note that cryptocurrency markets are highly volatile and speculative. The projections extend beyond the current date, so actual prices may vary significantly. Nonetheless, the dismissal of charges against Binance and CZ could be a pivotal moment, influencing market dynamics and regulatory approaches to cryptocurrency.

Read also

Ripple’s Legal Victory Averts an SEC-Induced Crypto Catastrophe, Asserts Prominent XRP Pro Lawyer

Binance Founder CZ Shows Gratitude to Supporters After Prison Sentence

Binance Under Fire: SEC Charges CZ and Binance for Alleged Security Violations

Binance’s TrueUSD Conspiracy Gets Debunked, Clears CZ Amid Mounting FUD

Binance and CZ may Face US Money Laundering Charges

The post Judge Clears Binance and CZ of SEC Charges, Analyst Predicts Bitcoin Surge to $200K by 2025 appeared first on Crypto News Land.

Overview of the Court Ruling

Judge Amy Berman Jackson’s decision, outlined in a court filing on June 28, 2024, allows most of the SEC’s claims against Binance to proceed. These include allegations related to Binance’s staking program, the initial coin offering (ICO) of its BNB token, and anti-fraud violations. Additionally, the court upheld the SEC’s assertion that former Binance CEO Changpeng Zhao acted as a “control person” within the organization.&middot

For the full story, head over to TheCurrencyAnalytics.com.

Binance SEC Lawsuit: Court Upholds Most Allegations, Legal Challenges Intensify Read CoinChapter.com on Google News

NOIDA (CoinChapter.com)— The Binance SEC lawsuit took a bad turn for the exchange US authorities continue their legal actions. Recently, the SEC expanded its litigation efforts against Binance and its founder, Changpeng Zhao (CZ), adding to the growing list of regulatory actions worldwide.

This follows news from Washington about increased regulatory pressures on major crypto exchanges.

Judicial Ruling: Implications for Binance and CZ

Judge Amy Berman Jackson’s recent ruling in the SEC v. Binance case adds significant legal challenges for Binance.

The court decided that the bulk of the Securities and Exchange Commission’s allegations, which include offering and selling unregistered securities, operating without proper registrations, and engaging in fraudulent practices, will proceed.

The allegations in the Binance SEC lawsuit highlight the severity of the regulatory pressures facing Binance and CZ.

The SEC has accused Binance and its affiliates of offering crypto assets such as BNB, BUSD, and various investment programs without proper registration, violating federal securities laws.

Investors celebrated a minor win in the Binance SEC lawsuit.

Moreover, the ruling highlights operational concerns, noting Binance.com and Binance.US failed to segregate customers’ assets, raising questions about asset management and security. The implications are significant for CZ.

Additionally, Zhao’s legal troubles could harm his reputation and influence in the crypto community. Furthermore, the court’s decision in the Binance SEC lawsuit suggests that CZ could face prolonged legal scrutiny, potentially impacting his role and future within the industry.

Operationally, Binance might need to undergo substantial changes to comply with regulatory requirements. This could involve registering as an exchange, broker-dealer or clearing agency, and segregating assets stringently.

These changes would increase operational costs and place Binance under closer regulatory surveillance.

BNB Price Celebrates Minor Win

BNB bulls seemed to be celebrating one aspect of the judgment in the Binance SEC lawsuit. In a partially favorable ruling for Binance, the court dismissed the SEC’s charges related to secondary market BNB sales and Simple Earn.

Moreover, the bulls seem to be defending multi-month trendline support, with BNB price rallying just 1% to reach a daily high near $573.

BNBUSD daily price chart with RSI. Source: Tradingview.com

If BNB price succumbs to bearish pressure, the Binance token price could drop to the support level near $538. Breaching immediate support might force the BNB price to drop to the support level near $506 before recovery.

On the other hand, a recovery rally from here, following the Binance SEC lawsuit news, could see BNB price rise to the 20-day (red) and 50-day (purple) EMA resistance confluence near $596. Moreover, flipping the immediate resistance could bring BNB price rise to the resistance near $638.

The relative strength index for BNB remained neutral, with a score of 40.84 on the daily charts.

The post Binance SEC Lawsuit: Court Upholds Most Allegations, Legal Challenges Intensify appeared first on CoinChapter.

A recent court ruling has allowed most of the U.S. SEC’s lawsuit against Binance to proceed. Moreover, this decision, made by Judge Amy Berman Jackson, is a significant setback for Binance. Additionally, the SEC alleges that Binance and its founder, Changpeng Zhao, violated securities laws by inflating trading volumes, diverting funds, and misleading investors. Despite efforts to dismiss the case, Binance must now face these serious allegations in court.

Details of the SEC Lawsuit

The lawsuit, filed by the SEC, accuses Binance of several infractions. These include mishandling customer funds and facilitating unregistered securities trading. Out of thirteen charges, ten will fully proceed, while parts of three charges were dismissed. Notably, one dismissed count involves secondary sales of BNB, Binance’s token, by other parties. This mixed ruling has major implications for the crypto industry, highlighting the ongoing regulatory scrutiny it faces.

 Ongoing Legal Troubles of Binance

This lawsuit adds to Binance’s mounting legal issues. In November, the company agreed to pay $4.3 billion to settle charges with the Department of Justice and the CFTC over illicit finance violations. Additionally, Zhao received a four-month jail sentence related to these charges. The SEC’s lawsuit is separate, focusing on unregistered trading and misleading practices. These ongoing legal battles showcase the increasing pressure on Binance from U.S. regulators.

Market Impact and Binance Response

The legal challenges have impacted Binance’s market position. The price of BNB, its native token, has seen fluctuations. While it has increased significantly this year, recent legal developments led to minor downturns. Binance maintains that the SEC is overreaching, with its CEO, Zhao, defending the company’s practices. However, the crypto market remains cautious, observing how these legal proceedings will unfold.

The Broader Regulatory Landscape

Under SEC Chair Gary Gensler, the commission continues to pursue enforcement actions against crypto entities. Gensler argues that most digital tokens are unregistered securities, and the SEC is determined to regulate the industry. This ongoing legal action against Binance is part of a broader crackdown on crypto exchanges. The debate over whether digital tokens qualify as securities remains unresolved, with many in the industry accusing the SEC of overregulation.

Conclusion

Binance’s legal challenges with the SEC reflect the broader tensions between regulators and the crypto industry. As the lawsuit proceeds, its outcome will likely have significant implications for Binance and the wider crypto market. The industry awaits further legal clarifications, hoping for more defined regulations in the future.

 

Last Updated on June 29, 2024 by COINBUZZFEED

In the dynamic world of cryptocurrencies, fortunes can be made overnight. As of 2024, the landscape is dominated by a select group of individuals whose wealth is as vast as their influence on the market. This article delves into the lives and financial standings of the richest crypto billionaires, shedding light on how they accumulated their wealth and their impact on the crypto sphere.

Changpeng Zhao: The Titan of Crypto

Changpeng Zhao, popularly known as CZ, is a household name in the crypto community. The founder and CEO of Binance, one of the largest cryptocurrency exchanges in the world, CZ has seen his wealth skyrocket alongside the growth of his platform. With a net worth estimated at $33 billion in 2024, CZ’s success story is a testament to the potential of cryptocurrencies.

CZ’s Journey to Billionaire Status

Born in Jiangsu, China, and later moving to Canada, Zhao’s early life was marked by modest beginnings. His foray into the crypto world began with a stint at Blockchain.info and later as the CTO of OKCoin. In 2017, he launched Binance, which quickly grew due to its user-friendly interface, diverse coin offerings, and high transaction speeds.

Binance: The Powerhouse Exchange

Binance’s success is a significant contributor to Zhao’s wealth. The platform not only serves millions of users worldwide but also innovates continuously with products like Binance Smart Chain and Binance Coin (BNB). These innovations have cemented Binance’s place at the forefront of the crypto exchange market.

Brian Armstrong: A Visionary in Crypto

Brian Armstrong, the co-founder and CEO of Coinbase, is another towering figure in the crypto world. With a net worth of around $15 billion, Armstrong’s journey from a software engineer to a crypto billionaire is inspiring.

The Birth of Coinbase

Founded in 2012, Coinbase aimed to provide a secure and straightforward platform for buying and selling cryptocurrencies. Its user-centric approach and regulatory compliance have made it one of the most trusted names in the industry.

Coinbase’s IPO and Beyond

Coinbase’s direct listing on the NASDAQ in April 2021 marked a significant milestone not just for the company but for the entire crypto industry. This event highlighted the growing acceptance of cryptocurrencies in mainstream finance and boosted Armstrong’s wealth substantially.

The Winklevoss Twins: Crypto Pioneers

Cameron and Tyler Winklevoss, known for their legal battle with Mark Zuckerberg over Facebook, have carved out a significant niche in the crypto world. With a combined net worth of several billion dollars, the twins have been instrumental in promoting Bitcoin and other cryptocurrencies.

Gemini Exchange

The twins founded Gemini, a highly regulated cryptocurrency exchange, which has garnered a reputation for security and compliance. Gemini’s success has played a crucial role in their wealth accumulation.

Bitcoin Investments

Early adopters of Bitcoin, the Winklevoss twins have profited immensely from their substantial investments in the cryptocurrency. Their foresight in recognizing Bitcoin’s potential has paid off, making them prominent figures in the crypto millionaire list.

Michael Novogratz: The Crypto Evangelist

Michael Novogratz, a former hedge fund manager and the founder of Galaxy Digital, has become one of the most vocal advocates for cryptocurrencies. His net worth is estimated at around $2.5 billion, derived from his extensive investments and business ventures in the crypto space.

Galaxy Digital

Galaxy Digital operates as a diversified financial services and investment management firm focused on digital assets and blockchain technology. Novogratz’s leadership and vision have driven the company’s growth and his own wealth.

Public Persona and Influence

Novogratz is known for his bullish stance on Bitcoin and other cryptocurrencies. His frequent appearances in the media and his predictions about the future of crypto have made him a key influencer in the industry.

The Richest Crypto Billionaires: A Diverse Group

Beyond the most well-known names, the list of the richest crypto billionaires includes a variety of individuals who have made significant contributions to the industry. From developers to early adopters, each has a unique story and path to wealth.

Vitalik Buterin: The Ethereum Genius

Vitalik Buterin, the co-creator of Ethereum, has seen his net worth soar to around $1 billion. His contributions to blockchain technology and smart contracts have revolutionized the industry, making Ethereum the second-largest cryptocurrency by market capitalization.

Sam Bankman-Fried: The FTX Mogul

Sam Bankman-Fried, the CEO of FTX, has accumulated a fortune through his exchange platform and strategic investments. His wealth, estimated at several billion dollars, underscores the profitability and potential of crypto exchanges.

Chris Larsen: The Ripple Effect

Chris Larsen, the co-founder of Ripple, has amassed considerable wealth through his work with the Ripple network and its digital payment protocol. His net worth is closely tied to the success of XRP, the native cryptocurrency of the Ripple network.

Top Bitcoin Investors: Strategic Visionaries

The top Bitcoin investors have played a pivotal role in the cryptocurrency’s rise. Their strategic investments and unwavering belief in Bitcoin’s potential have not only enriched them but also legitimized Bitcoin as a valuable asset.

Satoshi Nakamoto: The Enigmatic Creator

While not an investor in the traditional sense, Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is rumored to hold a significant amount of Bitcoin. The value of these holdings is estimated to be in the billions, making Nakamoto one of the wealthiest figures in the crypto world, albeit shrouded in mystery.

Tim Draper: The Venture Capitalist

Tim Draper, a well-known venture capitalist, has been an ardent supporter of Bitcoin. His early investments in Bitcoin have paid off handsomely, solidifying his place among the top Bitcoin investors. Draper’s bullish predictions and advocacy for Bitcoin have made him a prominent figure in the crypto community.

The Impact of Crypto Billionaires on the Market

The influence of crypto billionaires extends beyond their wealth. They play a crucial role in shaping the market, driving innovation, and advocating for the adoption of cryptocurrencies.

Market Movers

The decisions and announcements of these billionaires can significantly impact the market. For instance, when a prominent figure like Elon Musk tweets about Bitcoin or Dogecoin, the market reacts accordingly, showcasing the power and influence these individuals hold.

Innovation Drivers

Crypto billionaires are often at the forefront of innovation. Their investments in new technologies, startups, and blockchain projects drive the industry forward. Whether it’s through developing new platforms or funding research, their contributions are vital to the growth of the crypto ecosystem.

Advocacy and Regulation

Many of these billionaires actively engage with regulators and policymakers to shape the future of cryptocurrency. Their efforts in advocating for clear regulations and their involvement in industry discussions help create a more stable and secure environment for crypto investments.

The post The Astonishing Wealth of the Richest Crypto Billionaires in 2024 appeared first on COINBUZZFEED CRYPTO NEWS.