– Binance CEO Changpeng “CZ” Zhao and the cryptocurrency exchange have filed a joint motion requesting the dismissal of the SEC lawsuit.
– Lawyers for Binance and Zhao claimed that the SEC had overstepped its authority in the lawsuit.
– The petition stated that the SEC had failed to introduce clear guidelines for the sector and had retroactively imposed its regulatory authority over the crypto industry.
– Binance lawyers argued that the SEC misinterpreted securities laws and their application to crypto assets.
– Binance.US, the American outfit of the crypto exchange, also sought the dismissal of charges in a separate filing.
– The SEC sued Binance and its affiliates on June 5, accusing them of offering the sale of unregistered securities and illegal operations in the United States.
– Binance’s trading activity on Binance.US has been severely impacted by the regulatory action, with daily trading volumes dropping more than 98% since September 2022.
– Binance.US recently laid off 30% of its remaining workforce, with its president and CEO departing the firm.