The U.S. arm of the company, Binance.US, is currently embroiled in a legal battle with the Securities and Exchange Commission (SEC). The SEC alleges that the company has listed unregistered securities and offerings, a claim that the company and its legal team vehemently deny.
The Allegations: Binance.US vs SEC
The SEC, led by its Director of Enforcement Gurbir S. Grewal, asserts that Binance.US and its CEO Changpeng Zhao (CZ) has been mishandling user assets, thereby exposing investors to potential financial losses.
“Binance and CZ have the ability to mix and divert customer assets as they please, putting investor assets at risk,” Grewal stated.
In the initial charges filed, SEC Chairman Gensler accused CZ and Binance of deception, conflicts of interest, and evasion of the law. Consequently, the SEC filed thirteen charges against Zhao and Binance entities.
However, in a counterattack, the company and its legal team have filed a motion in court, accusing the SEC of providing misleading information about their handling of customer assets.
On June 21, the aforementioned company argued that the SEC’s statements were unfounded, stating that there was no evidence to support the claim of the improper handling of customer assets.
“The SEC’s press release seems to be intended to induce unnecessary confusion in the market, which might harm Binance customers more than it protects them.” Binance.US
If the judge accepts Binance.US’s motion, it could prevent the SEC from making certain public statements that the company believes could cause market confusion.