As it is known, Binance and its former CEO CZ admitted to the charges of preventing money laundering and violating US sanctions within the scope of the agreement they made with the US government.
Binance signed one of the largest corporate agreements in US history and agreed to pay $4.3 billion within the scope of this agreement. As part of the agreement, CZ will resign as CEO of Binance and pay a fine of $50 million.
While this agreement caused great repercussions in the cryptocurrency industry, SEC, another US institution that sued Binance, attempted to include this agreement in its own case.
Opposing this, Binance and its founder CZ stated in their petition to the court that the SEC's attempt to include the $4.3 billion settlement agreement with the US Department of Justice (DOJ) in the ongoing case is procedurally wrong, this should not be allowed, and that this agreement is unrelated to the SEC case. He said it wasn't.
In their petition, Binance and CZ accused the SEC of “territorial expansion,” claiming the SEC was applying a new, distorted interpretation of securities laws, and argued that the case should be dismissed.
In its petition to the SEC, Binance also argued that Binance customers did not undertake any liability after purchasing cryptocurrencies and that the SEC's claims would not legitimize the lawsuit they filed and that crypto purchases were not investment contracts.
In its petition, Binance lastly stated that the SEC did not prove its allegations in the lawsuit it filed in June, and reiterated that this request of the SEC should be rejected.
As you may remember, the SEC filed a lawsuit against Binance and its founder CZ on June 5, 2023. The SEC had accused Binance and CZ of 13 securities law violations in the ongoing lawsuit, including their management of customer assets on Binance.US and mixing or diverting customer assets.
*This is not investment advice.