In a recent press release, Binance said that the lawsuit against the company and its CEO is “baseless.”
Binance has reacted to the recent lawsuit by the SEC by stating that there was no basis for it. The company, in a release in response to the charges brought against it by the SEC said that it intends to defend itself vigorously against the suit which it termed as “baseless.”
A counter-productive action
Binance said that the suit by Binance would end up harming the very investors that it claims it wants to protect. It described it as unjustifiable even judging from the SEC’s own antecedence.
We reported that the SEC filed 13 charges against the company, alleging that it operated an unregistered exchange and broker. The charge by SEC also stated that Binance has been involved in the sale of unregistered securities, as well as allowed wealthy US residents to transact on its international platform, Binance.com.
A secret control over Binance US
Furthermore, the charge stated that Binance and its CEO, Changpeng Zhao, have maintained secret control over its affiliate in the US, Binance US, as well as mixed funds from the operations of the Binance US with those from its other subsidiaries.
In a reaction to the SEC lawsuit, the Binance team said that it is poised for a vigorous defense of what it termed “an all-too-common occurrence for entities and individuals operating in the American digital assets industry.”
A progressive move against the crypto industry
The company said that the operations of Binance US have been carried out in good faith with the regulator. It added that it operated above board, in line with the best practices that should be acceptable to a regulator, while helping provide Americans with safe access to digital assets.
It stated that Binance US has operated for over two years before the recent SEC action, noting that, with similar moves by the regulator against other crypto exchanges, it has become obvious that the SEC stands against the progress of the digital currency industry.
The company wrote:
“While we remain open to a productive compromise that protects our customers and their digital assets, with this latest action taken against our business and following similar actions taken against Coinbase, Gemini, Kraken, and other market participants, the SEC seeks a near eradication of our industry.”
A call for a bipartisan legislation
Binance called on the US Congress to intervene through a bipartisan legislation that creates a workable operational guide for the industry to avoid the sweeping action of SEC that seeks to
“stifle innovation and punish our company and industry rather than working to allow American businesses to thrive. Until then, our country’s role as a leader and innovator will continue to be undermined.”