John Reed Stark, the former chief of the SEC’s Office of Internet Enforcement, also expressed the SEC’s objections and took a screenshot quoting a statement from Binance’s chief compliance officer that Binance was The United States operates as an unlicensed stock exchange.
According to Stark’s Nov. 8 post on X, Binance may not be outdone in court.
A carefully considered choice
opposition Binance operates as a broker-dealer, exchange and clearing agency in the United States, subjecting the exchange to federal securities laws, the statement said.
Therefore, the document states that not following the rules is a “thoughtful choice.”
The document then highlighted that the indictment “details allegations that (Binance CEO Changpeng) Zhao and Binance knew they were operating the Binance platform in violation of U.S. law but devised a plan to pretend they were not U.S. operations” while secretly profiting from U.S. capital markets. ”
The exchange’s behind-the-scenes operations also show how controlling Zhao and Binance are to the point where employees believe they are puppets. Stark said that after reviewing the document, the SEC’s statement of complaint is strong, convincing and well supported by the facts and the law.
The battle continues
In June 2023, the U.S. Securities and Exchange Commission (SEC) sued Binance, Zhao, and Binance.US for illegally listing unregistered securities in the form of cryptocurrencies for trading by U.S. investors. The lawsuit later evolved into a fight over who could access client funds in the United States.
Binance countered that the regulator allegedly violated securities laws and acted excessively.