Binance Recent Settlement Doesn’t Make SEC Give Up Proceeding With Lawsuit

Key Points:

• The SEC leverages Binance recent settlement for its case.
• The agency urges the court to consider admissions by Binance and CEO Changpeng Zhao.
• Binance’s historic settlement excludes the SEC; legal proceedings are set for February 2024.

According to Bloomberg, the Securities and Exchange Commission (SEC) is leveraging Binance recent settlement worth $4.3 billion with the Justice Department and other US authorities to strengthen its own case against the world’s largest cryptocurrency exchange.

SEC Strengthens Case Using Binance Recent Settlement

Despite not being a party to Binance recent settlement, the SEC argued on Friday that the federal court in Washington hearing its case should consider the admissions made by Binance and its former CEO, Changpeng Zhao, in the November 21 settlement. Both Binance and CZ have sought the court’s dismissal of the SEC’s lawsuit.

Binance recent settlement with the US government concluded extensive investigations by the Justice Department, various arms of the Treasury Department, and the Commodity Futures Trading Commission. Notably, the agreement did not encompass the SEC, which had separately sued Binance and CZ in June for alleged mishandling of customer funds, misleading investors and regulators, and violating securities rules.

CEO Zhao’s Legal Odyssey: Plea, Bond, and Flight Risk Controversy

Changpeng Zhao, who recently pleaded guilty to a Bank Secrecy Act violation, is scheduled for a court appearance in February 2024. His release on a $175 million personal recognition bond, backed by cash in escrow and guarantors pledging around $5 million in assets, initially allowed him to return to the UAE, where he resides with his children and partner. However, prosecutors argued against this, citing flight risk concerns, and urged restrictions on his travel outside the U.S.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Visited 11 times, 11 visit(s) today

113