In the filing made by Binance.US, particular reference was made to statements by the SEC that suggested Binance and its CEO had the ability to mix or redirect customer assets.
The implication of these statements was deemed misleading and prompted Binance.US to address the issue.
Did the SEC mislead the public?
Binance.US and its associated firms have accused the Securities and Exchange Commission (SEC) of being dishonest and providing misleading information. They have taken legal action, seeking court intervention on June 21, to challenge the SEC’s allegations regarding the management of customer assets.
https://t.co/hSHrrlF7o7 and Its Legal Team Allege SEC Issued Misleading Statements in Lawsuit https://t.co/mLKGneRSOu
— CZ 🔶 BNB (@cz_binance) June 22, 2023
In the filing, reference was made to statements by SEC Enforcement Director Gurbir Grewal, who suggested that Binance and its CEO, Changpeng Zhao, had the ability to mix or redirect customer assets as they desired. Furthermore, the filing requested a court order for all parties involved to return to the United States.
On June 21, during questioning about the possibility of assets being diverted from BAM Trading Services and BAM Management US Holdings, the SEC was compelled to admit in court that no such violations had occurred.
This recent motion arose from a consent order between the SEC and Binance.US, which detailed how the exchange could use its funds. Binance perceived the SEC’s subsequent press release regarding the handling of customer assets as misleading and a clear violation of the agreement.
The press release suggested that the SEC had taken “emergency relief” measures to protect the assets of Binance.US clients, insinuating that Binance had control over these assets and could potentially mishandle them. Binance strongly contested these assertions, highlighting that the SEC had acknowledged lacking evidence to support such claims.
The BAM companies argue that these statements could greatly influence the case’s outcome and are urging the court to enforce established rules of conduct upon the SEC. If granted, this motion could restrict the SEC from making specific public statements that Binance believes would cause confusion in the market.
Binance positions itself:
Binance presents itself as a global leader in blockchain technology and the provision of infrastructure for crypto-assets. It offers a wide range of financial products, including the largest digital asset exchange based on trading volume.
The Binance platform strives to enhance financial freedom for its users and provides various crypto-asset services such as trading, finance, education, research, social initiatives, investment support, decentralized solutions, and infrastructure development.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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