Federal Judge Upholds Most SEC Complaints Against Binance: Founder Changpeng Zhao May Be Personally Liable
Federal Judge Upholds Most SEC Charges Against Binance, Founder May Be Personally Liable
In a blow to Binance, a federal judge has upheld most of the charges levied against the cryptocurrency exchange by the Securities and Exchange Commission (SEC). The ruling found that Binance may have offered unregistered investment products and violated anti-fraud provisions, with the company’s founder and former CEO Changpeng Zhao potentially facing personal liability for the violations.
While the judge dismissed certain claims related to some of the charges, such as Binance’s initial sales of BUSD, the overall ruling is seen as damaging to Binance’s prospects in the SEC case. However, legal experts in the crypto industry have celebrated the dismissal of the secondary sales charge, calling it a win for the greater crypto industry.
Judge Amy Berman Jackson’s ruling emphasized the need for a case-by-case approach when determining whether crypto assets constitute investment contracts. The ruling also criticized the SEC for appearing to argue both sides of the question regarding the designation of crypto assets as securities.
Overall, the ruling highlights the complexity of regulating the crypto industry and the importance of considering the specific circumstances of each case. Binance and its founder now face a challenging legal battle as they navigate the SEC’s allegations.
As the case unfolds, the crypto industry will be closely watching to see how it may impact the broader regulatory landscape for cryptocurrency exchanges and investors.
