The US Securities and Exchange Commission (SEC) believes that a $4.3 billion legal agreement between Binance and the Justice Department and other US institutions has strengthened its hand in the lawsuit it has opened against the cryptocurrency exchange. The SEC also wants to continue with the lawsuit it has opened against the world’s largest cryptocurrency exchange.
SEC Wants to Continue with Binance Lawsuit
Despite not being a part of the agreement, on December 8, the SEC requested that the federal court in Washington take into account the admissions in the legal agreement made by Binance and its former CEO, Changpeng Zhao, on November 21. Binance and Zhao, on the other hand, requested the court to dismiss the SEC’s case.
As is known, in the lawsuit filed by the SEC in June, Binance and Zhao are accused of misusing customer funds, providing misleading information to investors and regulators, and violating securities rules. The SEC also opposed Binance’s defense claiming lack of legal basis. The US federal regulator claimed that the cryptocurrency exchange’s defense was based on a misinterpretation of the law and objected to Binance’s request to dismiss the case.
According to the SEC, Binance’s argument poses a threat to established precedents that are very important for the functioning of the country’s securities laws. The SEC claims that Binance’s approach proposes a rigid framework that is not compatible with the existing legal system.
US Judge Decided CZ Must Stay in the US
On the other hand, after Binance’s former CEO Zhao admitted his guilt, US District Judge Richard Jones decided on December 7, 2023, that Zhao should stay in the US until he has served his sentence.
The judge stated that it was not possible for Zhao to return to his home in the United Arab Emirates until he completed his sentence on the grounds that he committed a serious crime in the US. As part of the plea agreement, Zhao, who resigned from the CEO position of Binance, faces a potential prison sentence of up to 10 years, but is expected to receive a maximum sentence of 18 months. Zhao also agreed to pay a $50 million fine as part of the agreement.
