Defendants Binance, Binance.US, and co-founder Changpeng “CZ” Zhao have filed a joint response to plaintiff U.S. Securities and Trade Fee (SEC) attempting to emphasise the relevance of default judgment in Coinbase insider buying and selling case SEC v. Wahi within the Binance lawsuit.
Binance Response to US SEC’s Supplemental Authority
In a court docket submitting late March 8, Binance Holdings submitted a response to the U.S. SEC’s discover of supplemental authority. Binance attorneys mentioned the Wahi default judgment got here in response to no opposition by defendant Sameer Ramani within the Coinbase insider buying and selling case and the choice merely recited the SEC’s statutory arguments.
Furthermore, Choose Torres’ resolution in SEC v Ripple Labs was not talked about within the Wahi case. Choose Torres rejected the SEC’s declare that blind gross sales of crypto tokens are “funding contracts”. Wahi case additionally missed the D.C. Circuit’s resolution in SEC v. Life Companions.
CFTC Commissioner Caroline Pham condemned the broader classification of digital belongings as securities by the SEC in 2022. Furthermore, the SEC settled the lawsuit with different defendants within the Wahi case after they challenged the SEC’s interpretation of the securities legal guidelines.
Binance requests the court docket to reject the SEC’s try and leverage a default judgment in response to a joint movement by Binance to dismiss the lawsuit.
Furthermore, Coinbase CLO Paul Grewal has already denied that default judgment in Wahi lawsuit is just not a legitimate precedent for different lawsuits or claiming jurisdiction over the crypto trade.
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Binance Faces One other Traditional Motion Lawsuit
The Second Circuit Courtroom of Appeals on Friday revived a category motion lawsuit in opposition to Binance and its founder Changpeng Zhao reversing a decrease court docket ruling of dismissing the case. Crypto traders alleged that they bought securities from Binance together with the ERC-20 tokens EOS, TRX, ELF, FUN, ICX, OMG, and QSP, when Binance used Amazon servers.
Whereas the ruling doesn’t point out whether or not sure crypto tokens are securities, this case can resurrect some important points in regards to the jurisdiction and the territorial attain of US securities legal guidelines.
Furthermore, the ruling revived at a time when judges want readability on whether or not secondary market buying and selling of digital belongings alleged to be securities, as dominated in a default judgment within the Wahi case, also can have implications.
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