Binance vs SEC Update : Key Deadline Set for July 29 by Judge Amy Berman Jackson

SEC Stands Firm: Binance Battle Rages On Despite DOJ's $4.3 Billion Settlement

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The legal saga between the U.S. SEC vs Binance Holdings Limited began when the SEC filed a lawsuit on June 5, 2023, in the District Court for the District of Columbia. The case, overseen by Judge Amy Berman Jackson and referred to Magistrate Judge Zia M. Faruqui, accuses Binance of violations under the Securities Exchange Act, focusing on securities and commodities-related issues only. 

Recently Binance bagged a major win when Amy Berman Jackson, a U.S. District Judge in the District of Columbia, dismissed several charges brought by the SEC against Binance and its founder, Changpeng Zhao (CZ). The charges dismissed relate to secondary market sales of BNB and the Simple Earn program. However, other charges, including those related to Binance’s initial token offering and ongoing sales, will proceed.

Recent Developments

On July 9, 2024, a significant scheduling conference was held where Judge Amy Berman Jackson ordered both parties to collaborate and submit a joint proposed schedule by July 29, 2024. This schedule must include deadlines for potential motions to amend the complaint, relief from rulings, and details on the discovery process.

Since now the case proceedings and timelines will be set it is anticipated that several motions and orders have been filed under seal, indicating sensitive information. The case continues to move forward with detailed planning and collaboration required from all parties involved.

SEC’s Allegations: What Are They Saying?

Filed in June 2023, the SEC’s lawsuit accuses Binance and its CEO, Changpeng Zhao, of inflating trading volumes, diverting customer funds, failing to block U.S. customers from its platform, and misleading investors about its market controls. Plus, the SEC alleges that Binance facilitated the trading of unregistered securities, further complicating its legal standing.

This ruling comes after Binance recently agreed to pay $4.3 billion to settle charges with the Department of Justice and the Commodity Futures Trading Commission over illegal finance breaches.

Similar allegations have been made against other major crypto exchanges such as Coinbase, Kraken, Consensys, and MetaMask, signaling a broad regulatory crackdown on the cryptocurrency industry.

Crypto Reaction

According to David Barrera, Co-Founder, and CEO, Enumma suggests curiosity about recent developments in the SEC v. Binance case. He speculates that the SEC might take further action by either amending its complaint or seeking relief from the court’s recent ruling on the motion to dismiss. This indicates that the SEC may be looking to adjust its legal strategy in response to the court’s decisions.
Ready for a crypto boom! Buckle up, because this ruling could be a game-changer.