Binance.US Asks Court To Dismiss SEC Lawsuit
Attorneys for Binance's U.S. unit are asking the court to dismiss the SEC's lawsuit, calling the allegations of wash trading " unsubstantiated facts."
Binance, Binance.US and Changpeng Zhao joined the recently filed motion to dismiss all counts of the lawsuit. The party's attorneys also stressed that all claims by the SEC are null and void.
In its June filing, the SEC accused Binance-linked companies, Binance Holdings Limited and BAM, of market manipulation as well as wash trading by Zhao's undisclosed trading firm Sigma Chain.
The attorneys also mentioned the company in their filing, pointing out that aside from isolated instances of Sigma Chain account interactions, the complaint does not contain any specific allegations regarding the company's alleged misconduct. They unobtrusively hinted at the SEC's lack of professionalism, stating that under the securities laws, fraudulent intent to manipulate the market is required for wash trading. The SEC's accusations are not supported by actual facts; the regulator does not even allege that the companies' actions caused actual harm to its customers.
Moreover, the SEC is asking the court to make a decision that only the U.S. Congress can make. The case concerns the classification of certain digital assets as securities. Despite the fact that the regulator has been practicing only this lately, there is a doctrine in place. It states that if an institution wants to make a decision on a matter of national importance, it must get authorization from Congress. This is a strong argument to dismiss the lawsuit, and Binance's attorneys used it.
Changpeng Zhao Binance Binance.US
