Binance sought clarity on ‘investment contract’ claims in order to dismiss SEC lawsuit.
Binance and its founder Changpeng Zhao have refuted claims surrounding ‘investment contracts’ in a lawsuit against the U.S. Securities and Exchange Commission (SEC).
Binance said: filing The SEC’s complaint on Tuesday said it “focuses on transactions by customers who clicked on the website, purchased tokens from other anonymous token holders, and then logged off.”
The exchange added, “Among the transactions in question, there was absolutely no contract with the promoter to invest funds.”
Binance claimed that the SEC ignored the requirement that the existence of an “investment contract” be determined on a transaction-by-trade basis.
BAM Trading and BAM Management, which operates Binance.US, also announced on Tuesday. filing The SEC did not adequately assert that digital asset transactions on the BAM platform constituted investment contracts.
“(Even if) there is ambiguity about how to apply the term ‘investment contract’ to digital assets, such key issues should be resolved by Congress, not the courts, requiring the separation of powers that the SEC’s own territorial history has proven necessary. “Increasing scale,” the company said.
Both submissions are available on Binance. They keep trying to fire me. that much A lawsuit filed by the SEC last June. SEC be sued Binance and its founder Changpeng Zhao were charged with violating the country’s securities laws, alleging that the cryptocurrency exchange lied to customers and misdirected funds to a separate investment fund owned by Zhao.
guilty plea
Last week, the SEC contaminated Binance and Zhao Notice to Court plead guilty Criminal violations related to anti-money laundering requirements.
“This court may take judicial notice of the facts contained in Zhao’s and Binance’s plea agreement and consent decree and consider them in deciding the joint motion,” the SEC added.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
