The US Securities and Exchange Commission (SEC) has filed a federal court document requesting a summary judgment ruling in its lawsuit against cryptocurrency exchange Binance. The SEC argues that specific issues raised in its case against Terraform Labs and its co-founder Do Kwon are also present in the enforcement action against Binance, Binance US, and former CEO Changpeng Zhao.
Judge Jed Rakoff previously ruled that certain tokens involved in the alleged scam were securities in the Terra case, agreeing with the SEC’s argument that they qualify as investment contracts. The SEC believes that this ruling is relevant to the consideration of Binance’s stablecoin BUSD, as well as its staking-as-a-service and Simple Earn programs.
Binance and Zhao had previously filed a motion to dismiss the SEC’s charges, claiming that the commission had overreached its jurisdiction and applied its rules retroactively. The SEC suggests that Judge Amy Jackson could reject this motion based on the grounds provided by the Terraform Labs ruling.
This case is one of the final ones from US financial regulators following Binance’s settlement with the Departments of Justice, Treasury, and Commodities Futures Trading for $4.3 billion in December. Zhao’s guilty plea to one felony count was a condition of the settlement, and he is set to be sentenced in February.
In addition to Terraform Labs and Binance, the SEC has also filed enforcement charges against Coinbase, Ripple, Kraken, and other companies for selling unregistered securities.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Do Kwon, Jed Rakoff, Amy Jackson, Changpeng Zhao |
| Companies | US Securities and Exchange Commission (SEC), Kraken, Ripple, Binance, Coinbase |
| Currencies | None |
| Securities | None |
