Binance and CZ’s Response to SEC Lawsuit
The SEC is making a foray into the crypto domain, suing one large company after another. This time, it’s Binance and its CEO CZ.
It’s time for the ultimate showdown.
After months of hints and talks, the US Securities and Exchange Commission (SEC) announced that it is suing Binance and its CEO CZ.
In the lawsuit filed on June 5, the regulators allege that the defendants made “purposeful efforts” to circumvent U.S. regulatory oversight while providing securities-related services to U.S. users. Accordingly, this “puts the safety of billions of dollars of U.S. investor capital at risk and at Binance’s and Zhao’s mercy.”
They are also incriminated with alleged breaches of US securities rules.
The lawsuit reportedly features testimony from former Binance.US CEO Catherine Coley. Despite keeping a low profile for years, she seems to have shed light on insider trading in the SEC’s 2022 investigation.
Meanwhile, CZ has been summoned by the US district court.
Expectedly, the reaction to the announcement caused a great stir in the crypto community.
In response, Binance’s Twitter published a response saying that the “SEC complaint aims to unilaterally define crypto market structure” on June 5.
“We are disappointed that the U.S. Securities and Exchange Commission chose to file a complaint today against Binance seeking, among other remedies, purported emergency relief. From the start, we have actively cooperated with the SEC’s investigations and have worked hard to answer their questions and address their concerns,” they write, adding that their efforts were rendered in vain.
The freshest tweet, however, features the get-together Binance had in the Polish city of Gdansk where “350 Binancians” gathered to discuss crypto.
Binance’s tweet. Source: Twitter
CZ was more active in addressing the SEC’s actions. At first he quoted a tweet by Eleanor Terett that said that he along with other people mentioned in the lawsuit must appear before the court. He wrote a caption that reads, “I was told this is just part of the SEC compliant process. Nothing new. Also told I won't have to appear in person. No need to FUD.”
He clarified that the FUD referred to the general atmosphere on Twitter, not Terett’s tweet.
He also retweeted a tweet by Ryan Selkis that takes a swipe at Gensler, dubbing him an “incompetent and crooked cop.”
Ryan Selkis tweet. Source: Twitter
And a tweet by Cameron Winklevoss where Cameron wrote, “Being sued by the SEC used to mean you probably did something wrong. Now it means you're probably doing something right.
Cameron Winklevoss tweet. Source: Twitter
It is yet to be clarified in full how Binance and CZ are planning to defend themselves against the legal action.
GNCrypto will keep its finger on the pulse of events.
Previously, we reported about evidence that sheds light on Binance’s wrongdoings.
