- Also joined by Binance.US (BAM) and Changpeng Zhao
- Company claims regulator intentionally misled public
- SEC claims Binance.US diverted customer assets when it was not proven
The cryptocurrency exchange Binance, its US division and Changpeng Zhao filed suit against the SEC (Securities and Exchange Commission). It alleges that the regulator misled the public with unproven misuse of client funds.
The reason for the lawsuit was a June 17 SEC press release. In it, the Commission cites a statement from agency spokesman Gurbir Grewal:
“Given the fact that Changpeng Zhao and Binance control customer assets and can mix or divert them as they see fit, as we have argued before, this prohibition (TRO) is absolutely necessary.”
The lawsuit, in turn, says the following:
“The SEC has no evidence that assets of BAM (parent company of Binance.US) were dispersed, commingled or misused in any way.”</nbsp;
In fact, during the June 13 hearing, the judge asked the prosecution directly whether there had been such. An SEC spokesperson responded as follows:
“We have not recorded any capital movements outside the United States.”
For confirmation from the text transcript, see here.
Binance, Binance.US and Changpeng Zhao ask the court to order the SEC to refrain from making such statements until the case is concluded. It is not yet known exactly when the suit will be heard. Recall, June 17, a federal judge approved the deal between the agency and Binance.US. The unit’s assets have not been completely frozen, which will allow it to continue operations.