Binance.US, Binance Holdings, and CEO Changpeng Zhao, have accused the U.S. Securities and Exchange Commission (SEC) of making “misleading” statements in a press release regarding an ongoing securities lawsuit. The legal teams filed a motion claiming that the SEC had made false claims about commingling customer assets or diverting customer assets, despite a court transcript to the contrary.
In the motion, Binance alleges that the SEC’s press release was designed to create confusion and may harm Binance.US customers by tainting the jury pool with misleading descriptions of evidence concerning the defendants. If approved by a federal judge, the order could prevent the SEC from issuing public statements on the Binance lawsuit that could materially impact court proceedings.
The SEC filed a lawsuit against Binance, Binance.US, and CZ on June 5, alleging unregistered securities offerings and Binance’s failure to register as an exchange or broker-dealer clearing agency. At the time, SEC Chair Gary Gensler claimed that CZ and Binance had “misled investors about their risk controls,” seeking disgorgement and other penalties. In an attempt to freeze all Binance.US assets, the SEC filed a motion but later reached a compromise agreement allowing only exchange employees to access client funds while litigation continued. Meanwhile, Binance announced the launch of a regulated crypto platform in Kazakhstan amid the US legal proceedings.