Binance faces SEC lawsuit over unregistered securities, court moves forward with some claims

Currently, the United States Securities and Exchange Commission (SEC) has taken legal action against Binance, one of the most prominent cryptocurrency exchanges in the world. Binance is accused by the Securities and Exchange Commission (SEC) of violating federal securities laws by proposing the sale of unregistered securities and improperly conducting business in the United States. There are a number of allegations against Binance in this legal action. These allegations include those related to the company’s staking program, the sale of BNB tokens after the initial coin offeringand breach of anti-fraud regulations. Some claims have been allowed, while others have been dismissed by the court that heard them.

Charges Allowed to Proceed: Binance’s Staking Program The court has decided to proceed with charges related to Binance’s staking program, which allows those who participate in the program to collect incentives by holding certain cryptocurrencies.
Claims regarding the sale of BNB tokens following the cryptocurrency’s initial coin offering will also move forward. In this context, the court will further investigate the SEC’s claims.

Anti-Fraud Breaches: The court has granted permission for the continuation of claims related to anti-fraud violations committed by Binance. This indicates that the Securities and Exchange Commission has provided sufficient evidence to support these allegations.

“Controlling Person” Allegation: The court also chose to pursue the SEC’s accusation that Changpeng “CZ” Zhao, the former CEO of Binance, assumed the role of a “controlling person” within the company to deal with.

Claims regarding secondary market sales of BNB dismissed by the court. The court ruled that the claims regarding secondary market sales of BNB were dismissed. The claims of the Securities and Exchange Commission (SEC) regarding the sale of BNB tokens on the secondary market did not meet the conditions set by the court.
Binance USD (BUSD) Sale: The court has ruled that all claims related to the sale of Binance USD (BUSD), the stablecoin issued by Binance, have been dismissed.

The court’s decision to allow numerous claims to proceed is notable, despite the fact that several claims were dismissed. Specifically, it suggests that the Securities and Exchange Commission (SEC) has made a compelling case against Binance, raising concerns about the exchange’s compliance with securities regulations. The court has scheduled a hearing for July 9 to conduct a more in-depth investigation into the allegations and gather further evidence.

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