US court dismisses certain charges brought by the SEC against Binance – DiarioBitcoin

The court dismissed several charges brought by the SEC against Binance, But the dispute will continue because it acknowledges that the exchange may have committed irregularities contemplated in securities laws.

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• Court dismissed part of the charges against Binance
• However, he agreed with the SEC on other charges.
• The legal dispute will continue in court
• The cost of the legal battle has had heavy consequences for Binance, especially Binance.US

The federal court handling the case Securities and Exchange Commission (SEC) against Binance dismissed some of the charges brought by the regulatory agency, but said other allegations are valid and must be subject to due process.

Some charges against him dismissed Binance

According to an order issued by the corresponding court, reported by the media CoinDesk, Judge Amy Berman Jackson determined that “SEC charges against Binance for initial coin offering and ongoing sales of BNB, BNB Vault, staking services, failure to register, and fraud charges may proceed.”

However, Judge Berman granted Binance and its former CEO, Changpeng Zhao, the motion to dismiss charges related to secondary sales of BNB and certain returns programs enabled by the exchange.

According to the report, the clarification comes in light of a claim presented by the SEC around the case, claiming that certain actions taken by Binance under Zhao’s management could constitute a violation of federal securities laws. Judge Jacson validated some of these arguments, considering that such “These observations are illuminating and persuasive, as the differentiation is consistent with the Supreme Court’s earlier pronouncements on the meaning of the term ‘investment contract’ buried in the long list that comprises the definition of a ‘security.’”

However, with respect to the dismissed charges, the case of Ripple against SEC in court related to secondary sales of BNB. The judge also rejected arguments that the agency cannot take enforcement actions against crypto entities under the “doctrine of important issues” under guidelines of the US Congresssince it is not an industry with a scope wide enough to apply to this consideration.

The demand for the SEC

Among the accusations, the SEC said Binance.US had diverted client assets at his discretion through an entity owned by Zhao, thereby engaging in a complex fraud operation. The agency also mentioned that 12 tokens that are traded on the exchange, including BNB and BUSD, They were values

The actions sparked a battle between the company and US regulators that reached court in January. Binance management has since alleged that the process has had high costs for the exchange, including the expenses of the legal dispute and the loss of confidence from investors and users.

Binance also took a hit in November 2023, when the US Department of Justice imposed a historic fine of USD $4.3 billion to settle an investigation. As part of that agreement, Zhao pleaded guilty of violating the Bank Secrecy Law and resigned from his position as CEO of Binance and Chairman of the Board of Directors of Binance.US, and is currently serving a sentence in an American prison.

Article by Angel Di Matteo / Bitcoin Diary

Picture of Unsplash

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