Binance on Thursday filed a lawsuit in the Federal High Court accusing the U.S. Securities and Exchange Commission (SEC) of unethical conduct. According to the filing, the SEC violated court rules after both parties sought legal resolutions on an alleged asset freeze.
In a recent development in the ongoing battle between Binance and the SEC, the exchange’s legal representatives stated that the US regulator made statements outside the court that were false, designed to harm its customers, and would likely affect the case’s proceeding. Furthermore, Binance’s representative requested that the court order the SEC to cease violating applicable court rules.
On June 5, the SEC sued the leading crypto exchange, Binance, for blatantly violating securities law. The regulator alleged that the crypto firm offered trading services to U.S. investors after publicly noting it would discontinue servicing the region in 2019. A US court then summoned Binance CEO Changpeng Zhao, which according to the exchange’s boss, was part of the legal process.
SEC Issued Misleading Statements: Binance
In the lawsuit, Binance alleged that the SEC made misleading statements in a press release after both parties had reached a formal agreement on how to best handle the ongoing legal battle.
Binance stated that the US regulator alleged that the exchange had secured “emergency relief.” Also, the crypto firm cited that the SEC accused CZ of commingling and diverting customers’ assets while also noting that the court order was “essential to protecting investor funds.”
Furthermore, the lawsuit revealed that, despite questioning from the judge ruling the case, the SEC’s attorney could not provide evidence that CZ diverted and laundered Binance.US customers’ funds.
The Long Legal Battle Continues
The battle between Binance and the SEC has yet again taken another twist with the latest filing. The U.S. regulator will now be forced to respond to the reprimand from Binance. Speaking in the lawsuit, the leading exchange noted that the SEC not only violated court rules but also went against its code of conduct.
Bill McLucas and George Canellos, who were former heads of the SEC’s Division of Enforcement, signed the allegations of misconduct lawsuit.
