BinanceUS scores a small win as the court rejects SEC’s plea
The court judge rejected an American securities regulator’s plea to inspect BinanceU.S. documents.
BinanceUS is an American crypto exchange, a subsidiary of global crypto exchange Binance. In June of this year, the United States Securities and Exchange Commission (SEC), the top American financial regulator, sued BinanceUS, Binance, & its CEO Changpeng Zhao (CZ) over unregistered securities offerings and customer fund transactions with a lack of safety.
On 18 Sep 2023, U.S D.C District Judge Zia Faruqui eventually rejected this inspection plea made by the SEC. The plea was for an inspection into BinanceU.S. The SEC based its case on claims that the Ceffu – a custody platform – was a Binance-related entity.
— Thanh Nguyen_Crypto news (@Thanhnv6199) September 19, 2023
UPDATE on SEC vs. BINANCE:
SEC faced another setback in court today.
SEC did not succeed in obtaining access to BinanceUS's Ceffu software.
Judge Faruqui stated that he does NOT intend to allow an inspection [of Ceffu] at this time. pic.twitter.com/XmVMr3vwPX
However here people are considering this legal development a small win for BinanceUS over SEC’s blind enforcement actions but people need to know that the court judge showed a lack of confidence in BinanceUS’s control over the customer assets.
SEC vs Crypto
Since 2021, Under the leadership of Gary Gensler, the US SEC has taken several enforcement actions against the crypto companies.
The majority of the crypto companies blindly admitted their mistake & settled the case and few of them took to court to fight against the SEC’s enforcement actions.
But this year Grayscale & Ripple like crypto companies showed strict action and secured a major victory against the SEC’s arguments in the court, on behalf of rules, laws, & facts.
Currently, American crypto exchanges Coinbase, BinanceUS, & Ripple are big players against SEC’s enforcement actions and all these are independently fighting against SEC in the court.
BinanceUS is struggling badly because of the earnings downfall, as the exchange delisted 100+ crypto assets trade pairs from the exchange following the SEC’s suit. The trade volume on this exchange plunged badly. Some people claimed that Binance may struggle badly in the court fight, as its financial position is getting weak.
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