US Fed Suer Intervenes US SEC Lawsuit Against Binance And CEO “CZ” – Crypto News – Crypto News
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US Fed Suer Intervenes US SEC Lawsuit Against Binance And CEO “CZ” – Crypto News

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In a fresh development in the US Securities and Exchange Commission (SEC) lawsuit against Binance, a third-party “Eeon” seeks to intervene in the case on behalf of customers. The US SEC filed a lawsuit against Binance GlobalBinance.US, and CEO Changpeng “CZ” Chao last month, bringing 13 charges including misleading investors and securities law violations.

Third-Party Intervenes Binance Vs US SEC Lawsuit

Nevada-based legal entity “Eeon” on behalf of customers filed a motion to intervene in the US Securities and Exchange Commission v. Binance Holdings lawsuit, according to a Filing with the District Court for the District of Columbia. The petitioner argues SEC and Binance attorneys have represented their interests and none has attempted to speak on behalf of customers.

“We are the proper parties to this matter as we have been identified by the Court in its Order issued on June 17, 2023 – as “Customers.” We are not just any “Customers” as we are stake holders, investors, and owners of our cryptocurrency held by Binance and its subsidiaries and we do feel that our interests were not taken into consideration.”

Eeon claims crypto coins are not securities, but commodities as “it is used for personal use, household use, and we are not treating these coins as commercial.” It adds that there are no regulations for new type of commodities and the SEC has no jurisdiction over cryptocurrencies.

It asserts Binance currently blocks access to their crypto assets by controlling the keys and blocking withdrawals without proper notice. The party blamed the US SEC for making things worse for investors than protecting them, accusing customers of engaging in money laundering. In addition, the petitioners requested an order by the court to allow customers access to their frozen “property” on the platforms.

Furthermore, it claims that moving of funds offshore is a common practice and is not considered money laundering. Online retailers, freelance services, consulting firms, small export companies, and travel agencies transfer money overseas and are not considered money laundering.

“The Court speaks as to the holding of our funds and wallets, and how Binance US, was comingling funds from the United States with that of its overseas affiliates. Now although there was nothing illegal in and of itself with such activities, the moving of funds offshore is a common practice and the practice is not considered money-laundering.”

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Customers Seek Damages From Binance and US SEC

In the counter claim filed by “Eeon,” the entity asks Binance and the US SEC to pay 20% of the daily value of withheld funds compounded per-diem, or a total of $1000 per day per customer. Also, Binance and the US SEC will have equal responsibilities for paying penalties, $500 by the US SEC and $500 by Binance and its subsidiaries for their actions.

Customers have invested their money in the exchange and cryptocurrencies for a long period of time. Sudden action by the US SEC without evidence and clear crypto regulations have filed a lawsuit against Binance and Binance.US, which has impacted customers’ daily activities. It also cites that the court could have frozen a part or 50% of crypto assets which would have allowed customers to some part of their property.

“Eeon” claims to have 30 years of experience in court cases and quotes a previous court filing against the US Federal Reserve System in 2018.

Also Read: Cathie Wood’s Ark Invest Sells $53 Million In Coinbase Shares, Buys Meta And Robinhood

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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