In a fresh development in the US Securities and Exchange Commission (SEC) lawsuit against Binance, a third-party \u201cEeon\u201d seeks to intervene in the case on behalf of customers. The US SEC filed a lawsuit against Binance Global<\/a>Binance.US, and CEO Changpeng “CZ” Chao last month, bringing 13 charges including misleading investors and securities law violations.<\/p>\n Nevada-based legal entity \u201cEeon\u201d on behalf of customers filed a motion to intervene in the US Securities and Exchange Commission v. Binance Holdings<\/a> lawsuit, according to a Filing<\/a> 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.<\/p>\n <\/p>\n \u201cWe are the proper parties to this matter as we have been identified by the Court in its Order issued on June 17, 2023 \u2013 as \u201cCustomers.\u201d We are not just any \u201cCustomers\u201d 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.\u201d<\/p>\n<\/blockquote>\n Eeon claims crypto coins are not securities, but commodities as \u201cit is used for personal use, household use, and we are not treating these coins as commercial.\u201d It adds that there are no regulations for new type of commodities and the SEC has no jurisdiction over cryptocurrencies.<\/p>\n 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.<\/p>\n <\/p>\n 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.<\/p>\n \u201cThe 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.\u201d<\/p>\n<\/blockquote>\n Also Read: Terra Classic Community Pool, Quant-Binance USTC Talks, Coinbase LUNC Listing<\/a><\/strong><\/p>\n <\/p>\n In the counter claim<\/a> filed by \u201cEeon,\u201d 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.<\/p>\n 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.<\/p>\n \u201cEeon\u201d claims to have 30 years of experience in court cases and quotes<\/a> a previous court filing against the US Federal Reserve System in 2018.<\/p>\nThird-Party Intervenes Binance Vs US SEC Lawsuit<\/h2>\n
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Customers Seek Damages From Binance and US SEC<\/h2>\n
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