Binance Immediately Responds Strongly To SEC Allegations
- Binance spoke out in response to the SEC after the recent event.
- The exchange expressed regret over the SEC’s decision to file a complaint seeking emergency relief against the exchange.
- Binance also addressed Coinbase’s current legal struggle with the SEC.
After today’s major event, in which the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, the world’s largest cryptocurrency exchange, Binance has publicly reacted to the charges and issued an official statement about the current situation.
The exchange expressed its regret in the Securities and Exchange Commission’s decision to file a complaint seeking emergency relief against the exchange in the statement.
“We are disappointed that the U.S. Securities and Exchange Commission chose to file a complaint today against Binance seeking, among other remedies, purported emergency relief. From the start, we have actively cooperated with the SEC’s investigations and have worked hard to answer their questions and address their concerns.”
It stressed that it has aggressively attempted to collaborate with the SEC and achieve an agreement over the agency’s past investigations into the cryptocurrency exchange.
“Most recently, we have engaged in extensive good-faith discussions to reach a negotiated settlement to resolve their investigations. But despite our efforts, with its complaint today the SEC abandoned that process and instead chose to act unilaterally and litigate. We are disheartened by that choice.”
Binance, on the other hand, said that the SEC’s lawsuit deviated from the cooperative procedure since the agency opted to pursue litigation unilaterally. According to the exchange, the SEC chose enforcement and litigation over the deliberate, nuanced approach needed, given the dynamic and complicated nature of the technology.
Binance mentioned Coinbase’s current legal struggle with the SEC, stating that the action is just another example of the Commission governing “with the blunt weapons of enforcement and litigation rather than the smart, nuanced approach necessary by this dynamic and sophisticated technology.” Labeling particular coins and services as securities unilaterally, even while other US agencies have claimed jurisdiction, exacerbates these issues.”
The SEC charged Binance, the world’s biggest cryptocurrency exchange, and its founder, Changpeng Zhao, with comingling billions of dollars in customer cash and sending them to a European business owned by Zhao.
The effect of this event was seen across the crypto market, with major cryptocurrencies sustaining large losses. The exchange native token, BNB, fell by more than 10%. Moreover, Binance’s CEO called the US watchdog’s case an attack on the whole cryptocurrency industry.
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