Binance and CEO Changpeng Zhao ask court to dismiss SEC suit

Binance CEO Changpeng “CZ” Zhao and his cryptocurrency exchange has filed a joint motion asking for the dismissal of the United States Securities and Exchange Commission (SEC) lawsuit versus them. According to a Sept. 21 filing to the United States District Court, both Binance Holdings and Zhao declared that the financial regulatory had overstepped its authority in the suit against them. In the 60-page petition legal representatives for Binance and Zhao accused the SEC of failing to present clear guidelines for the sector ahead of its suit versus the crypto exchange and as a result, had actually imposed its regulatory authority over the crypto sector retroactively.Binance Holdings and CZs joint movement to dismiss the SEC suit made versus them. Source: CourtListener” The SEC pursues these unique theories retroactively, looking for to impose liability for sales of crypto properties that took place as far back as July 2017, prior to the SEC supplied any public assistance concerning cryptocurrency.”” It is clear that the SECs claim has no foundation in the currently enacted securities laws.” Lawyers for Binance likewise asserted that the regulator fundamentally misinterprets securities laws and their application to crypto properties. ” In attempting to claim regulatory power over the crypto industry, the SEC misshapes the text of the securities laws,” read the filing.In addition to Binance and Zhaos petition, the American outfit of the crypto exchange, Binance.US– legally referred to as BAM Trading Services Inc.– also relocated to have the charges made against it dismissed in a seperate 56-page filing made on the very same day. Related: SEC sees short-lived problem in demand to gain access to Binance.US softwareThe SEC took legal action against Binance and its affiliates on June 5, pushing a series of charges that alleged Binance of using the sale of unregistered securities and for operating illegally in the United States. The SECs move against Binance came three months after the Commodity Futures Trading Commission (CFTC) also took legal action against for Binance for stopping working to sign up with it and for breaking numerous of its standards. Trading activity on Binance.US have been hit hard by the ongoing regulatory action versus the exchange, with daily trading volumes dropping more than 98% from Sept. 2022. On Sept. 13 Binance.US laid off 30% of its remaining labor force, with its president and CEO Brian Shroder also departing the firm. Magazine: How to secure your crypto in an unpredictable market– Bitcoin OGs and professionals weigh in