Binance Scores Partial Victory as Judge Dismisses Some SEC Charges
A judge allowed most SEC charges against Binance to proceed but dismissed some related to secondary BNB sales and the Simple Earn program.
Binance is a leading cryptocurrency exchange platform, known for its extensive range of digital assets and trading features, offering services such as spot and futures trading, staking, and various financial products. In the US, Binance provides crypto services via a subsidiary, BinanceUS.
On 28 June 2024, Judge Amy Berman Jackson ruled that the SEC (the United States Securities and Exchange Commission) could go ahead with most of its charges against Binance. These charges include issues related to the initial coin offering of BNB, its ongoing sales, BNB Vault, staking services, failure to register and fraud allegations.
However, the judge agreed to dismiss the charges related to secondary sales of BNB and Binance’s Simple Earn program. This means that Binance still faces significant legal challenges, but some specific allegations have been dropped.
Here, people need to know that similar charges are also faced by other top American crypto exchanges, Kraken and Coinbase.
Some legal experts believe it will take a long time to see resolutions in SEC cases against crypto companies (Binance, Coinbase, Kraken) due to significant complications around the applicability of rules and laws to cryptocurrencies.
The SEC has been trying to fight against crypto companies over their failure to comply with traditional financial rules and laws, which were developed long before the origin of cryptocurrencies.
Binance vs US DOJ
In Nov 2023, Binance agreed to a $4.3 billion settlement with the US Department of Justice (DOJ) to resolve its criminal case involving securities law.
Currently, Binance’s co-founder & former CEO Changpeng Zhao (CZ) is spending his life in prison as part of the settlement & court ruling over the AML violation charges. He already spent 1 month in jail & now 2 months remaining.
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