New Move from Binance Former CEO Changpeng Zhao’s Lawyers! They Submitted a Petition to the Court, Here are the Details

Binance and former CEO Changpeng “CZ” Zhao’nun Their attorneys have filed a motion to dismiss the Securities and Exchange Commission (SEC) amended lawsuit against them, citing a lack of regulatory clarity regarding digital assets.

Binance and CZ Move to Dismiss Amended SEC Case, Criticizing Regulatory Uncertainty

The petition filed Monday targets an amended complaint filed by the SEC last month.

The defense argues that the SEC’s amended complaint overrules a previous court decision that found crypto assets are not inherently securities.

Binance’s lawyers argue that “the resale of assets on the secondary market long after they were first distributed by their developers is not a ‘securities’ transaction.”

According to its filings, the SEC claims that all transactions involving digital assets qualify as securities because buyers can expect a future increase in asset value.

Binance’s legal team also criticized the SEC for not establishing clear regulatory rules. “The SEC still refuses to articulate any standards for courts, plaintiffs, or market participants to know which crypto asset transactions qualify as investment contracts,” the filing said.

It was emphasized that the SEC recently abandoned the claim that transactions involving Ether are investment contracts without explanation.

The SEC first filed its case against Zhao and Binance in June 2023. The case is separate from the criminal charges filed by the Department of Justice (DOJ), which resulted in Binance paying a $4.3 billion fine for money laundering and sanctions violations. Zhao, who spent four months in prison, has since been released.

The SEC has taken actions against other crypto firms recently, including a Wells notice issued last week to blockchain gaming firm Immutable.

*This is not investment advice.