Binance capitulation to DoJ may have harmed its case against the US SEC

Binance’s $4.3 billion settlement agreement with the DoJ and others supported the SEC’s lawsuit against the exchange, financial regulator says.
Per the commission, the court should refer to CZ’s admissions in the settlement following his guilty plea in November.
Meanwhile, Binance and CZ wants the court to dismiss the entirety of the SEC’s lawsuit.

Lockridge Okoth FXStreet

Binance holdings Ltd is once again the subject of discussion on crypto X as the US Securities and Exchange Commission (SEC) leverages the exchange and its former CEO’s capitulation to the US government for merits in its own conquest against the same defendant.

Also Read: SEC believes Binance and ex-CEO Changpeng Zhao crimes were similar to fraud witnessed in FTX

Binance capitulation to DoJ adds merits to US SEC case

Binance exchange’s recent capitulation to the US Department of Justice (DoJ), submitting to a $4.3 billion fine, may have harmed its case against the US SEC, according to a Bloomberg report.

The SEC said Binance Holdings Ltd.’s $4.3 billion settlement agreement with the DOJ and others bolstered the SEC’s lawsuit against Binance, asking the court to refer to CZ’s admissions in the settlement. Binance and CZ have asked the court to dismiss the SEC’s lawsuit.…
— Wu Blockchain (@WuBlockchain) December 9, 2023

According to the SEC, Binance and CEO’s admission of guilt bolsters the financial regulator’s case against the trading firm, with the SEC arguing that the Washington federal court should “weigh admissions” by Binance and its firmer chief Changpeng Zhao in the November 21 settlement against the US government.

The SEC continues to pursue Binance and its former CEO for securities law violations, asset commingling, and diverting billions of Dollars of customer funds to a third-party entity owned by CZ.

Nevertheless, the world’s largest cryptocurrency trading platform and its founder, CZ, have asked the court to dismiss the SEC’s lawsuit.

Author

Lockridge Okoth

FXStreet

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

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