Blockchain expert John Reed Stark recently provided insights on Binance.US's legal strategy, revealing the exchange's vigorous contestation of the <a href="https://www.cryptoknowmics.com/news/lawyer-james-filan-discusses-why-ripple-and-sec-settlement-is-unlikely/" target="_blank" rel="noopener">Securities and Exchange Commission's</a> (SEC) ongoing fraud investigation. Stark's analysis of the latest court documents highlights a complex legal battle involving Binance founder Changpeng Zhao (CZ) and the U.S. Department of Justice (DOJ).

The SEC's lawsuit, filed in June, alleges that Binance and Binance.US sold unregistered securities, drawing parallels to the controversial <a href="https://www.cryptoknowmics.com/glossary#ftx" target="_blank" rel="noopener">FTX</a> case. The accusations include a purported backdoor allowing Binance.US to control customer assets. However, during a recent hearing, Binance.US attorneys refuted these claims, asserting a lack of evidence supporting asset misuse.

The legal turmoil has taken a toll on Binance.US, experiencing a reported 90% drop in assets and a halving of its user base since the lawsuit commenced. Meanwhile, Binance and CZ reached a $4.3 billion settlement in a separate case involving anti-money laundering law violations, but this did not address the SEC's fraud-related allegations.
<h2>Judge Urges Resolution in Binance Case; CZ's Travel Restriction</h2>
[embed]https://twitter.com/JohnReedStark/status/1729234093739512298[/embed]

Judge Zia Faruqui, overseeing the Binance and SEC case, expressed skepticism about the misappropriation of customer assets by Binance.US and CZ. During the hearing, he emphasized the need to balance legal scrutiny with practicality and urged the parties to resolve their dispute, setting a deadline for an update by December 15.

In a related development, CZ awaits a court decision on whether he can leave the U.S. before his sentencing in February. The judge has temporarily restricted his travel to the UAE, with CZ potentially facing up to 18 months in prison under federal guidelines. This legal saga marks a significant chapter in the evolving narrative of cryptocurrency regulation and legal accountability.

Binance.US Attorney Seeks SEC Investigation Halt

Bold move: Binance.US attorney requests a halt to SEC's fraud investigation. Stay tuned for the latest in this legal showdown. ⚖️ #BinanceUS #SECInvestigation

Sonakshi is into the crypto world ever since she heard about it and is pursuing her interest through Cryptoknowmics. She is a sensational poet, technical writer and content strategist.

Binance.US Attorney Seeks SEC Investigation Halt

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