Binance and Binance.US argue SEC did not meet "Howey Test" requirements in latest filing
Binance, Binance.US, and Changpeng Zhao have filed a reply to the SEC's lawsuit, arguing that the regulator did not meet the requirements of the "Howey Test." The filing states that the SEC did not show that the exchanges' U.S. customers had any contracts that would meet the definition of an "investment contract." Binance also pushed back against the SEC's adding the exchange's guilty plea with the DOJ and consent order with FinCEN, or Zhao's own DOJ plea, in the ongoing case. The filing argues that securities laws wouldn't apply the same way the Bank Secrecy Act or International Emergency Economic Powers Act did.
US SEC: Although Binance and the Department of Justice have reached a settlement, the lawsuit should continue to advance
The US Securities and Exchange Commission (SEC) stated that the recent $4.3 billion settlement agreement between Binance Holdings Ltd. and the US Department of Justice is a support for its lawsuit against Binance, as reported by Bloomberg. Although the SEC did not participate in the settlement agreement, Binance and Changpeng Zhao had previously requested the court to dismiss the SEC's lawsuit. Both Binance and Changpeng Zhao have not commented on this statement.
CZ hires former senior federal prosecutor Matthew Diggs as his defense attorney
Former CEO of Binance, CZ, has hired former federal prosecutor Matthew Diggs, who has extensive experience in white-collar crime, as his lawyer. Diggs is known for his expertise in handling complex legal cases, and his task is to defend CZ against possible charges that could result in 10 years of imprisonment.
Binance.US: CZ resigns as chairman
Binance.US stated that CZ resigned as chairman and transferred his voting rights through proxies.
Arthur Hayes: The United States’ handling of CZ and Binance is ridiculous. Cryptocurrency is one of the most important developments in the history of human civilization.
BitMEX co-founder Arthur Hayes wrote that the US government's treatment of CZ and Binance is absurd, highlighting the arbitrariness of national punishment. This absurd phenomenon tells us that cryptocurrency is one of the most important political, financial, and technological developments in human civilization history. It has such a powerful transformative power that in less than a decade, CZ can become one of the richest people in the world, and Binance can be more necessary for daily life than famous financial institutions that have existed for centuries. Hayes also said that since the US dollar is the largest financing currency in the world, if the credit price falls, all fixed supply assets such as Bitcoin and gold will rise in US dollar legal price. An important part of this bullish macro support is that it does not require Chinese companies and high net worth individuals to buy any Bitcoin. The interchangeability of global legal credit will determine the marginal legal dollar flowing into hard currency assets such as Bitcoin.
CZ: Consider cryptocurrencies to accelerate biotech
CZ posted on X platform stating that they have been reading about biotechnology and thinking about how to use encryption technology to speed up research funding in the field of biotechnology.
Former SEC official gives CZ advice: Don’t step into a dead-end street
Former Director of the SEC Internet Enforcement Office John Reed Stark wrote on X platform, giving CZ some advice: If you can't stand the punishment, don't commit the crime, don't do it. If you can't afford the price, don't take your chances. If there is no reward on your head, don't go to sleep. Don't step your feet onto a dead-end street.
WSJ: SEC Still Seeking More Evidence of Binance.US Fraud
According to the US Securities and Exchange Commission (SEC), they are still looking for evidence to determine whether Binance and its founder CZ have a backdoor to control assets stored on the Binance.US platform.
The U.S. Department of Justice believes that CZ's "flight risk is controllable" and does not want to detain CZ before sentencing.
November 28th, citing the latest court documents, the US Department of Justice does not want to detain CZ before the verdict and stated that CZ's "flight risk is controllable."
The U.S. Department of Justice responds to CZ’s travel restriction complaint: CZ’s family and wealth are in the UAE and he has motives to evade U.S. law
Court documents from the Western District of Washington federal court in the United States show that Changpeng Zhao may face a sentence of up to 18 months to ten years for his involvement in criminal activities. Despite being a billionaire and living in the United Arab Emirates, which does not extradite its citizens, he voluntarily went to the United States to stand trial. The government recommended bail before sentencing, but believed he still posed a flight risk and needed to be restricted during his stay in the United States to prevent him from returning to the United Arab Emirates. The government pointed out that Changpeng Zhao had no connection to the United States, and that his family and wealth were in the United Arab Emirates, so he had a motive to evade US law. The government requested that the court require Changpeng Zhao to stay in the United States during the period between his guilty plea and sentencing.
