Binance CZ says SEC lawsuit is ‘an attack on the entire industry’ Binance CZ says SEC lawsuit is ‘an attack on the entire industry’
US SEC lawsuit against Binance appears to have united the industry, with several stakeholders supporting the embattled exchange.
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Updated: Jul. 9, 2023 at 5:16 pm UTC
Aevozer / CC BY-SA 4.0 / Wikimedia. Remixed by CryptoSlate
Binance CEO Changpeng Zhao (CZ) described the U.S. Security and Exchange Commission lawsuit against his firm as an attack on the entire crypto industry.
On June 5, the SEC filed a lawsuit against Binance, and related entities, alleging federal securities law violations placing American investors at risk, including the firm offering of unregistered security tokens in BNB, ADA, and ALGO, among others.
Binance claims the SEC lawsuit is an overreach
In a June 5 statement, Binance said the SEC’s lawsuit is an “overreach” because it is not a U.S. exchange. The firm said it stands with “digital asset market participants in the U.S.” and is “prepared to fight [the lawsuit] to the full extent of the law.”
Despite its cooperation with the regulator, Binance denied the allegations and expressed disappointment at the SEC’s actions. It said:
“The SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry.”
Additionally, the U.S. subsidiary of the embattled exchange, Binance.US, labeled the SEC’s lawsuit as “baseless,” describing it as the latest example of the Commision’s regulation-by-enforcement approach towards the crypto industry.
Crypto community backs Binance
Meanwhile, the lawsuit appears to have united the crypto community, with several prominent figures coming forward in support of Binance.
Cardano (ADA) founder Charles Hoskinson said the lawsuit was “the next in a series of steps to implement chokepoint 2.0 in the United States.” Hoskinson noted that this is not a regulatory event but a political, philosophical disagreement about the existence of cryptocurrencies and what they represent.
TRON founder Justin Sun replied to CZ, saying he is “fully aware of your dedication to advancing the cryptocurrency industry, and your abilities and ethics are beyond reproach.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
BNB, or Binance Coin, is a cryptocurrency created by Binance.
Cardano
$0.95433
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Binance.US
Binance.US will provide secure and reliable cryptocurrency trading to users in the United States.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Charles Hoskinson, based in Colorado, stands out as a prominent figure in the blockchain and cryptocurrency sphere.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.
