Binance Lawyers Accuse SEC Of Breaking Conduct Rules In Lawsuit

Attorneys for Binance.US, Binance Holdings Ltd., and CEO Changpeng Zhao are blasting the U.S. Securities and Exchange Commission (SEC) for putting out “misleading” information and not adhering to the “applicable rules of conduct.”

A court filing, dated June 21, shows the attorneys taking issue with a statement made by SEC Enforcement Director Gurbir Grewal, in which he insinuated that Zhao and Binance are at liberty to “commingle customer assets or divert customer assets as they please.”

They also oppose an order that mandates all parties in the lawsuit to return to the U.S.

“The SEC has no evidence that BAM (Binance.US) customer assets have been dissipated, commingled or misused in any way,” the lawyers contend.

They further argue that the SEC’s press release is designed to sow confusion in the market, potentially harming Binance.US customers and negatively influence the jury.

Binance’s legal representatives included an excerpt from the transcript of a hearing held on June 13, in which the SEC’s counsel conceded that they have no evidence of Binance.US assets being transferred overseas.

This motion is part of the ongoing lawsuit that the SEC filed against Binance, Binance.US, and Zhao on June 5.

The lawsuit accuses them of offering unregistered securities and not registering Binance as an exchange or as a broker-dealer clearing agency.

SEC chair Gary Gensler had previously stated that Binance and CZ had “misled investors about their risk controls.”

The SEC is seeking disgorgement among other penalties.

Produced in association with Benzinga

Edited by Asad Ali and Saba Fatima