Binance, BinanceUS, and CEO Changpeng “CZ” Zhao earlier filed a joint motion to dismiss the lawsuit by the U.S. Securities and Exchange Commission saying that the SEC’s claims on securities-related violations are not plausible. Now, Binance.US has filed a motion to respond to Magistrate Judge Faruqui’s order to show cause related to the SEC’s reply in support of motion to compel.
Binance And US SEC Lawsuit Takes Interesting Turn
According to a court filing on September 22, BAM Management US Holdings and BAM Trading Services (BinanceUS) filed a motion for an extension of time.
The motion came in response to Magistrate Judge Zia M. Faruqui’s order to defendants to show cause to seal or redact any documents relating to the SEC’s Reply in Support of Motion to Compel. An approval of the motion will allow Binance.US to get more time to react to the SEC’s motion to compel.
Furthermore, Binance Holdings Limited and CZ claim that the SEC lacks authority and its arguments on securities violations are unclear. The defendants sought that the court should dismiss all the claims made by the SEC on the grounds that it fails to plausibly allege that any of the crypto assets it is contesting is a security.
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Binance.US Under Pressure
The U.S. Securities and Exchange Commission (SEC) lawsuit against Binance, the securities regulator has filed exhibits against Binance.US revealing that the exchange fails to cooperate in accordance with an earlier agreed consent order. Meanwhile, Binance.US claims that the SEC requests are “overbroad” and “unduly burdensome” in a protective order.
Binance.US trading volume has plummeted significantly from $5 billion to $40 million amid pressure from US regulators.
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