After reaching a settlement with the United States Securities and Exchange Commission (SEC), Binance and its legal team have vehemently denied these allegations and have now filed a motion alleging the SEC made misleading statements in the lawsuit.
The SEC has accused Binance and CEO CZ of avoiding compliance with the law and listing unregistered securities.
Binance and its legal team in a June 22 filing in US District Court alleged that the SEC issued misleading statements regarding the handling of client assets. According to Gurbir S. Grewal, Director of the SEC's Division of Enforcement:
"Given that Changpeng Zhao and Binance have control over the platform's client assets and have been able to combine client assets or divert client assets at will, as alleged, this ban is important to protect investor assets."
While referring to Grewal's statement, the lawsuit emphasized that the SEC had no evidence that the exchange pooled client assets or diverted assets at will.
Binance also accused chairman Gary Gensler of vested interests. They claim that Gensler had sought informal advice to the exchange before being appointed SEC chairman.
Binance's motion, if approved by the judge, could restrict the SEC from making certain statements publicly, intended to avoid market confusion and protect the exchange's reputation.
A few days ago, Binance.US entered into an agreement with the SEC that will block Binance Global officials from accessing customer funds on Binance.US.
