The U.S. Securities and Exchange Commission (SEC) has filed an amended complaint in its ongoing lawsuit against cryptocurrency exchange Binance , seeking to address issues raised by a federal judge earlier this year. The lawsuit , which began in June 2023, accuses Binance of operating as an unlicensed broker, clearinghouse, and trading platform, and offering unregistered securities through its native BNB Token , BUSD stablecoin, and Staking services.
Some notable points in the SEC's amended complaint include:
1. Sell BNB and Simple Earn products
The SEC has refined charges related to Binance’s sale of BNB Token Sale and the launch of its Simple Earn product. Judge Amy Berman Jackson previously dismissed some charges related to those products due to a lack of specific evidence, but allowed the main charges to proceed.
2. Expanding the charges to 10 cryptocurrencies
The regulator has strengthened its case against 10 cryptocurrencies, including SOL, ADA, Matic, FIL, ATOM, SAND, MANA, ALGO, AXS , and COTI, arguing that they were sold as unregistered securities on Binance. The new complaint details more details about how Binance promoted these Token , as well as the exchange’s Vai in increasing their market presence.
3. BNB is considered a security
The SEC further asserted that Binance marketed BNB as an investment tool for the development of the platform. Binance's practice of burning BNB and supporting projects related to the Token is allegedly aimed at increasing the value of BNB.
4. Change the legal language
Notably, the SEC has adjusted the terminology , replacing the phrase “ Cryptoasset securities” with “Cryptoasset offered and sold as securities,” to clarify that the agency is referring to the totality of investment contracts revolving around these assets, rather than just the assets themselves.
The amended complaint also includes allegations about Binance’s internal operations, such as the company paying its U.S. employees, including executives, in BNB. Former Binance CEO Changpeng Zhao is said to have compared the employee Token option program to stock options, which give employees the opportunity to Chia in the profits of Binance’s growth.
The amended complaint seeks to bolster the SEC’s argument that Binance continues to offer unregistered securities and operates without the necessary regulatory licenses. Binance has until October 11, 2024, to respond to the complaint.
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According to CoinDesk
