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Binance SEC lawsuit overview:
- Who: The U.S. Securities and Exchange Commission has come to an agreement with Binance amidst its ongoing enforcement lawsuit against the cryptocurrency exchange.
- Why: The deal will allow Binance to continue operating amid the lawsuit. The SEC has also been given oversight into the spending practices of its Binance.US platform.
- Where: The lawsuit was filed in the U.S. District Court for the District of Columbia.
Binance has reached an agreement with the U.S. Securities and Exchange Commission (SEC) that will allow the cryptocurrency exchange to continue operating amidst the agency’s ongoing enforcement lawsuit.
The agreement, which the SEC called “emergency relief,” comes with the stipulation that the agency will be given oversight into the spending practices of its American platform, Binance.US.
The SEC said the agreement will protect assets belonging to Binance’s American customers, while the crypto exchange said the deal will let it continue to run its platform without interruption from the agency.
“Given that (Binance and its CEO) have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets,” Gurbir S. Grewal, director of the SEC’s Division of Enforcement, said in a statement.
Order prohibits Binance.US from spending corporate assets ‘other than in the ordinary course of business’
The SEC said the order prohibits BAM Trading Services — which does business as Binance.US — from “spending corporate assets other than in the ordinary course of business,” while helping ensure Binance.US customers are able to continue withdrawing assets from the platform.
The SEC has also assured Binance.US users that any assets that remain on the platform are protected and will remain within the U.S. through the resolution of its litigation against Binance Holdings Ltd., BAM and Binance’s founder and CEO Changpeng Zhao.
“We ensured that U.S. customers will be able to withdraw their assets from the platform while we work to resolve the alleged underlying misconduct and hold Zhao and the Binance entities accountable for their alleged securities law violations,” Grewal said.
The Commodity Futures Trading Commission also filed a complaint against Binance, Zhao and its COO, Samuel Lin, over claims they skirted federal registration and regulatory requirements by offering unregistered crypto and helping their customers evade compliance measures they had set.
Have you used Binance or Binance.US to invest in digital assets? Let us know in the comments!
The Binance SEC lawsuit is U.S. Securities and Exchange Commission v. Binance Holdings Ltd., et al., Case No. 1:23-cv-01559, in the U.S. District Court for the District of Columbia.
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One thought on Binance allowed to continue operations during lawsuit as long as SEC oversees spending
I was scammed $1000 from Binance. They suggested if I came to the platform and traded my assets into USDT that I would automatically make so much so when I went to do so, my imnvestment disappeared.