According to Binance, the SEC has not provided evidence that the agreements made with the DOJ are relevant to the regulator’s “erroneous allegations” against Binance Holdings and former CEO Changpeng Zhao.
Binance
In response to the US Securities and Exchange Commission’s (SEC) decision to incorporate Binance’s admission of guilt to the Department of Justice (DOJ) in its legal proceedings, Binance Holdings and its former CEO, Changpeng Zhao, have responded.
Binance stated that the SEC’s attempt to include the $4.3 billion guilty plea and settlement agreement with the DOJ in the ongoing case was procedurally incorrect and should not be allowed in a filing made on December 12 to the U.S. District Court for the District of Columbia.
On June 5, 2023, the SEC filed a lawsuit against Binance, alleging 13 violations of securities laws, including that Zhao and Binance mixed or redirected customer assets and managed customer assets on Binance.US. This legal dispute is still ongoing.
In November, the Department of Justice concluded its investigation into Binance by reaching a separate settlement with the company and its former CEO. Through the agreement, Binance was spared $4.3 billion in fines and was able to carry on with business as usual as long as it complied with US laws.
The SEC argued that the federal court supervising its case against the exchange ought to take into account the declarations and admissions made by Binance and Zhao in the Nov. 21 settlement, even though they were not expressly included in the settlement.
According to the SEC, the settlements show that Binance knew it was conducting business, providing services to American clients, and utilizing American infrastructure for transactions while it was there. Binance responded by stating that the SEC had not demonstrated how any of the agreements made with the DOJ related to the SEC’s “erroneous allegations” against Zhao and Binance Holdings.
