Binance Challenges SEC's Attempt to Include Their Admission of Guilt in Ongoing Legal Case

By: Eliza Bennet

In recent developments related to the ongoing legal proceedings between Binance and the United States Securities Exchange Commission (SEC), Binance, alongside its former CEO Changpeng Zhao, has expressed concerns regarding SEC's move to add Binance's admission of guilt to the Department of Justice (DOJ) to their ongoing legal battle. Binance states that the SEC has not demonstrated the relevance of their resolutions with the DOJ to the accusations against Binance and the ex-CEO.

In a filing dated December 12 submitted to the U.S District Court for the District of Columbia, Binance claimed that the SEC's action to include the $4.3 billion guilty plea and settlement agreement with the DOJ was procedurally incorrect and stated it shouldn't be permitted. The saga between Binance and the SEC initiated on June 5, 2023, when the SEC accused Binance of 13 securities law violations, including claims that Zhao and Binance oversaw Binance.US customer assets, and mismanaged or redirected these assets.

Furthermore, Binance, Binance.US, and Changpeng Zhao recently argued that the SEC failed to meet the requirements of the 'Howey Test' in its suit against the two entities and their founder, and this has become a part of their latest bid to dismiss the lawsuit.