HomeBinance UpdatesBinance Cleared of SEC Charges – CryptoMode

Binance Cleared of SEC Charges – CryptoMode

U.S. District Judge Dismisses Some Charges Against Binance and CZ in SEC Lawsuit

In a recent development in the world of cryptocurrency, U.S. District Judge Amy Berman Jackson made a significant ruling in the case involving the Securities and Exchange Commission (SEC) and Binance Holdings Limited, along with its founder Changpeng Zhao (CZ).

The judge dismissed several charges brought by the SEC against Binance and CZ, specifically related to secondary market sales of BNB and the Simple Earn program. However, other charges concerning Binance’s initial token offering and ongoing sales will proceed.

The SEC’s complaint alleges various violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by Binance, CZ, and their affiliates. These violations include offering and selling crypto assets without a registration statement, operating trading platforms without proper registration, and making false statements to investors. The charges cover a wide range of Binance’s operations, including BNB sales, BNB Vault, staking services, and more.

The court’s decision to dismiss some charges was based on a detailed analysis of the legal standards for securities fraud and registration violations. The court emphasized the importance of meeting the standards set by the Federal Rule of Civil Procedure 12(b)(6), which requires a complaint to contain enough facts to state a plausible claim.

While some charges were dismissed, the ruling indicates that significant portions of the SEC’s case against Binance and CZ will continue. The court also scrutinized the SEC’s allegations of fraud under Rule 9(b), which demands precise details in fraud claims.

This ruling marks a crucial moment in the ongoing legal battle between the SEC and Binance, shedding light on the complexities and challenges faced by cryptocurrency companies operating in the regulatory landscape. The outcome of this case will undoubtedly have far-reaching implications for the future of cryptocurrency regulation in the United States.

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