Binance to vigorously defend against SEC lawsuit.

  • The U.S. Securities and Exchange Commission (SEC) sued Binance on Monday, accusing the crypto exchange of violating securities laws.
  • Binance responded to the allegations made by the regulator.
  • As a result of the lawsuit, blockchain Global Inc’s shares dropped by 10%.

Binance, the world’s leading crypto exchange, was the subject of attention on Monday following the SEC’s lawsuit.

Here’s what Binance said in its response to SEC

The regulator had filed charges against Binance and its CEO Changpeng Zhao for failing to comply with U.S. securities laws. The Commodities Futures Trading Commission (CFTC) had also previously made similar charges against the crypto firm.

Additionally, the SEC accused Binance of mixing user funds worth billions of dollars with Merit Peak Limited, a European company controlled by Changpeng Zhao. However, Binance denied any wrongdoing in its official response to the regulator:

“Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong. We will vigorously defend against any allegations to the contrary.”

Crypto community stood with Binance on Twitter

On Twitter, many in the crypto community expressed support for Binance and Changpeng Zhao, with some criticizing the SEC for its treatment of crypto assets in the U.S.

Binance also commented on the regulator’s actions, stating that its overreach was damaging the U.S.’s reputation as a center for financial innovation. Nonetheless, it maintained that it would cooperate with regulators and policymakers worldwide to ensure that the next generation of crypto regulation promotes innovation.

“We’ll continue to cooperate with regulators and policymakers across the globe. We remain committed to productive engagement to ensure next-gen of crypto regulation fosters innovation.”

The SEC’s lawsuit against Binance resulted in blockchain Global Inc’s shares falling by around 10% on Monday.