Binance, the world’s largest cryptocurrency exchange, pleaded guilty and agreed to a settlement with the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC), the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) in November last year. It paid a $4.3 billion fine; but its lawsuit with the U.S. Securities and Exchange Commission (SEC) is still ongoing.
During this period, Binance has repeatedly asked the court to dismiss the lawsuit. At 10 a.m. Eastern Time on January 22 (11 p.m. tonight in Taiwan), Binance and the SEC will hold the first hearing in court. Binance will Urge the judge to dismiss the SEC's charges.
In June last year, the SEC sued Binance parent company Binance Holdings, Changpeng Zhao, Binance US, etc., and filed 13 charges against the defendants, alleging that the defendants operated unregistered exchanges, illegally provided and sold securities to U.S. investors, and improperly Processing of client funds…etc.
Although judges usually do not rule on hearings so quickly, if the SEC presents any unknown evidence in court to attack Binance, it may bring significant fluctuations to the currency market, so investors are advised to be cautious.
Binance’s net capital inflows still outperform its competitors
After Binance reached a plea bargain with U.S. regulators in November last year, there was a period of capital outflows, with more than $1 billion in funds withdrawn within 24 hours. However, the panic of capital outflows soon eased.
According to Defilllama data, in the two months since then, Binance’s net inflows have reached $4.6 billion, still beating out other exchange competitors, including OKX’s $2.6 billion and Bybit’s $1.1 billion.
Comparison of fund inflows to Binance and other exchanges. Source: Defilllama
The SEC also held a hearing with exchange Coinbase last week
In fact, just last week, another exchange, Coinbase, also held a hearing in the U.S. District Court for the Southern District of New York seeking to dismiss the SEC lawsuit.
After listening to the court’s five-hour hearing, Elliott Stein, a senior litigation analyst at Bloomberg, wrote that he believed Coinbase had a good chance of winning the case and predicted a 70% chance of a complete dismissal of the SEC’s charges.
Going into the SEC lawsuit Coinbase hearing, I thought Coinbase would likely win dismissal of its main claim (regarding the transactions) on this motion, but would likely not succeed on the staking and brokerage claims.
But after the hearing, I think Coinbase will probably win the entire case.
Although the backgrounds of the two exchanges are different, they may serve as a reference for the possible outcome of the lawsuit between Binance and the SEC. Binance has a greater chance of winning.
Coin circle layout, nod picture, follow Brother Zhi on the homepage, and share passwords in small circles.
