Binance, the global cryptocurrency exchange, has submitted two crucial filings on December 12, countering an ongoing case initiated by the U.S. Securities and Exchange Commission (SEC). In the first filing, Binance seeks the dismissal of the SEC’s case against the company and its former CEO, Changpeng Zhao, launched in June.
The filing argues that the SEC has not convincingly alleged that various Binance tokens and services qualify as securities or investment contracts. Additionally, it contends that the SEC’s specific claims regarding Binance’s BNB token are time-barred, asserting that the offerings occurred outside the U.S. or are untimely.
Furthermore, the filing claims that the SEC’s allegations concerning certain Binance.com transactions, such as BNB Vault and Simple Earn, attempt to apply securities laws extraterritorially in a manner that is not legally permissible. Binance insists that the SEC’s failure to provide fair notice about its securities claims justifies the dismissal of the lawsuit.
The filing also argues for the dismissal of complaints against Zhao, citing a lack of personal jurisdiction. According to Binance’s defense, Zhao’s role in controlling Binance is insufficient grounds for jurisdiction, and the SEC has not adequately alleged Zhao’s contact with U.S. users relevant to the case.
In a separate filing on December 12, Binance contested the SEC’s attempt to consider the plea deals arranged by Binance and Zhao with the Department of Justice (DOJ) and other U.S. government agencies. Binance argues that the SEC’s notice is procedurally improper and fails to demonstrate the relevance of the DOJ settlements to the SEC’s claims against Binance and Zhao.
The filing contends that the plea deals only indicate violations of the Bank Secrecy Act and do not establish fair notice from the SEC regarding other securities and exchange acts. Binance maintains its lack of jurisdiction defenses and urges the court to disregard the SEC’s notice while pressing for the complete dismissal of the case.
