Business Markets News Report
June 27, 2023

Binance.US Lost a Court Case Over Misleading SEC Statements

In Brief

A federal judge denied Binance’s attempt to limit the SEC’s use of terms referring to Binance.US’ handling of client money in press releases. The judge ruled that the SEC’s extrajudicial statements were not misleading.

Binance.US, operated by BAM Trading, recently faced a legal setback as Federal Judge Amy Berman Jackson denied its request to limit the Securities and Exchange Commission’s (SEC) use of specific language related to Binance.US’s handling of client funds in its press releases.

Binance.US lost a court case over misleading SEC statements

Binance’s legal team filed a complaint on Friday, objecting to the SEC’s press releases. They argued that the SEC’s extrajudicial statements were misleading, particularly its description of alleged mismanagement of user funds. The SEC claimed that CEO Changpeng Zhao controlled investment entities that received diverted or commingled funds from the trading platforms.

Judge Amy Berman Jackson, of the District of Columbia District Court, rejected these allegations. She declared that the court’s role was not to edit public statements from any of the parties involved in the case. She also asserted that court intervention wasn’t necessary at this point and that it was unclear whether the SEC’s public relations efforts would materially impact the case proceedings.

SEC vs Binance.US

Binance.US’s legal team had previously requested that the judge censure the SEC outside of court for its characterization of the alleged mismanagement of billions of dollars in client funds, arguing that such statements could potentially bias a jury. However, this request was denied.

The SEC filed a lawsuit against Binance, Binance.US, and Changpeng Zhao on June 5, alleging that the exchanges provided unregistered securities to US users. It also claimed that Binance had failed to register as an exchange or a broker-dealer clearing agency. Initially, the SEC had requested the court to freeze all assets of Binance.US, but later settled for a compromise allowing only the exchange’s employees to access customer funds.

  • Binance.US attorneys have argued against the US Securities and Exchange Commission’s (SEC) request for a temporary restraining order to freeze its assets. The team for Binance.US and CEO Changpeng Zhao stated in a court filing on Monday that customer assets were not at risk, dismissing the SEC’s claims as an “emergency.” The attorneys further contended that compliance with the SEC’s proposed measures would harm Binance.US customers and effectively shut down the business operations of Binance.US.

Read more related articles:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

More articles
Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Hot Stories

Big Bets: The Biggest Gambling Cryptocurrencies of 2024

by Viktoriia Palchik
April 22, 2024
Join Our Newsletter.
Latest News

Big Bets: The Biggest Gambling Cryptocurrencies of 2024

by Viktoriia Palchik
April 22, 2024

The DOGE Frenzy: Analysing Dogecoin’s (DOGE) Recent Surge in Value

The cryptocurrency industry is rapidly expanding, and meme coins are preparing for a significant upswing. Dogecoin (DOGE), ...

Know More

The Evolution of AI-Generated Content in the Metaverse

The emergence of generative AI content is one of the most fascinating developments inside the virtual environment ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Exponential Bitcoin Bull Market Is Yet To Commence, Notes Crypto Analyst Willy Woo
Markets News Report Technology
Exponential Bitcoin Bull Market Is Yet To Commence, Notes Crypto Analyst Willy Woo
April 22, 2024
Unibot Unveils Three Growth Initiatives, Outlines Plans For Referral System, Token Buyback, And Rewards
Markets News Report Technology
Unibot Unveils Three Growth Initiatives, Outlines Plans For Referral System, Token Buyback, And Rewards
April 22, 2024
Galxe Community Initiates Vote On Proposal For Token Symbol Change And Contract Migration
Markets News Report Technology
Galxe Community Initiates Vote On Proposal For Token Symbol Change And Contract Migration
April 22, 2024
SatoshiVM Plans Runes Bridge Testnet Launch Next Week, Alpha Mainnet to Follow
Markets News Report Technology
SatoshiVM Plans Runes Bridge Testnet Launch Next Week, Alpha Mainnet to Follow
April 22, 2024