Binance, CZ’s Lawyers File Motion to Dismiss Amended Complaint in SEC Lawsuit
Lawyers for Binance and former CEO Changpeng Zhao have filed a motion to dismiss the SEC's amended lawsuit, arguing that it misinterprets a prior court ruling that crypto assets are not inherently securities. The motion claims the SEC's complaint incorrectly categorizes secondary market resales of crypto assets as securities transactions based on speculative buyer expectations. It criticizes the SEC for failing to provide clear regulatory standards for crypto transactions and for arbitrarily designating certain assets, like Ether, as investment contracts without explanation. The SEC's lawsuit against Zhao and Binance, initiated in June 2023, is distinct from criminal charges by the Department of Justice. In November 2023, Binance acknowledged violations related to anti-money laundering and was fined $4.3 billion, while Zhao served four months in prison before his release.
