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Brayden Lindrea
BRAYDEN LINDREA
29 JUN 2024
A US court admits most of the SEC vs. lawsuits. Binance*_
Judge Amy Berman Jackson, however, dismissed the SEC's claim that BNB is illegally traded on secondary markets, citing the Ripple decision.
A US court admits most of the SEC vs. lawsuits. BinanceNEWS
Cryptocurrency exchange Binance has failed to convince a US court to dismiss most of the lawsuits filed against it by the country's securities regulator.
Lawsuits related to Binance staking program, BNB sale
BNB
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€543
after its initial coin offering and anti-fraud violations will continue, Judge Amy Berman Jackson stated in a June 28 court notice.
The security regulator's claim that former Binance CEO Changpeng "CZ" Zhao acted as a "control person" will also proceed, as will its claim that Binance was required to register under the Exchange Act.
But it wasn't a perfect deal for the Securities and Exchange Commission (SEC), as Jackson ultimately decided to dismiss lawsuits related to secondary market sales of BNB and all sales related to the Binance USD (BUSD) stablecoin.
Memorandum Opinion and Order of Judge Amy Berman Jackson in Binance Holdings v. SEC. Source: CourtListener
Jackson cited Judge Analisa Torres' ruling in the SEC case against Ripple to support his decision to dismiss the SEC's lawsuit over BNB secondary market sales.
It caught financial lawyer Scott Johnsson by surprise, who described it as a "huge loss" for the securities regulator.
Source: Scott Johnson
Fox Business journalist Eleanor Terrett hopes that lawyers for Coinbase, Kraken and Consensys "will use this opinion to strengthen their positions in their own litigation."
Jackson also rejected the SEC's claims related to Binance's "Simple Earn" passive income feature.
Jackson scheduled a court hearing for July 9.
The SEC led by Gary Gensler sued Binance in June 2023, alleging that Binance offered the sale of unregistered securities and operated illegally in the United States.
Binance and CZ moved to dismiss the SEC's lawsuit about three months later, arguing that the SEC was overstepping its legal powers.
Seven US states, including Alaska, Florida, Maine and North Carolina, have revoked or denied Binance the right to renew its money transmitter license.
Meanwhile, CZ is currently serving a four-month prison sentence for violating money laundering laws.
Despite the lawsuit, Binance remains the world's largest cryptocurrency exchange, with more than 200 million users and $100 billion in assets under management.
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