Since June, the SEC has been regularly making serious allegations against Binance’s CEO. She is still relentlessly seeking to prove her allegations, despite the recent outcome of the case with the DoJ. Let’s take a closer look at Gary Gensler’s team’s complaints against CZ and the current state of the proceedings as of Tuesday, November 28th.
The SEC’s ongoing charges against Binance and CZ
While some might think that the confrontation between Binance and US authorities is over, the SEC doesn’t seem to see it that way. Indeed, the settlement reached between the DoJ, CFTC, US Treasury and Binance covered topics such as the financing of terrorism and the sale of unregistered securities, but the SEC has other criticisms of Binance and its former CEO.
According to report from the Wall Street Journal, the SEC accused Binance of several violations, including creating a “backdoor” that allowed potential FTX-style control over client assets. Since June, the SEC has suspected Binance of being involved in “a vast conspiracy of fraud, conflicts of interest, financial opacity and, above all, flagrant indifference to the law.” A critical point of the indictment concerns SigmaChain, a Swiss platform that allegedly received funds from Binance while it was owned by CZ.
Future of SEC Lawsuits Against Binance
Judge Zia Faruqi, who is in charge of the case, may consider ending the legal proceedings against Binance due to the lack of evidence and the settlement reached with the DoJ. However, the SEC seems determined to pursue the case. The final decision is expected before the end of the month.
The current situation is complex, with SEC charges in the balance. District of Columbia Judge Zia Faruqi noted during a hearing that Binance’s admissions in the DoJ deal may work in its favor.
Binance’s lawyers argued strongly to influence the court decision. Faced with an apparent lack of evidence from the SEC, Binance wants to close the case. The judge asked the two sides to find common ground and notify him by December 15.
What Future for Binance Facing SEC Challenges? It remains to be seen whether the SEC will drop its case, allowing Binance to honor the signed agreement, or whether litigation is inevitable. Additionally, CZ’s personal situation remains uncertain, with plans to return to the UAE currently on hold following a US court ruling.
