Although Binance reached a settlement with the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC), the Office of Foreign Assets Control (OFAC), and the Financial Crimes Enforcement Network (FinCEN) in November last year , pleaded guilty and agreed to pay a $4.3 billion fine, but litigation with the U.S. Securities and Exchange Commission (SEC) is still ongoing.
During this period, Binance has repeatedly asked the court to dismiss the lawsuit. At 10 a.m. Eastern Time on January 22 (11 a.m. tonight in Beijing), Binance and the SEC will hold their first hearing in court, and Binance will fight for the judge to dismiss the SEC’s charges.
In June last year, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance parent company Binance Holdings, Changpeng Zhao, and Binance US (Binance US), accusing them of engaging in unregistered exchange business and illegally 13 charges including offering and selling securities to U.S. investors while also accusing them of misconduct in handling client funds.
Although judges typically do not rule quickly on hearings, if the SEC presents undisclosed evidence in court to fight Binance, it could cause significant volatility in the currency market. Therefore, investors should remain cautious.
Binance’s net capital inflow is still better than its competitors
After Binance reached a plea bargain with U.S. regulators in November last year, there was a capital outflow, with more than $1 billion being stolen in 24 hours. Withdraw. However, the market subsequently returned to stability and fears of capital outflows quickly abated.
According to Defilllama data, Binance’s net inflows have reached $4.6 billion, surpassing other exchange competitors, including OKX’s $2.6 billion and Bybit’s $1.1 billion.
Comparison of capital inflows from Binance and other exchanges
The SEC and the exchange Coinbase also held a hearing last week
In fact, Last week, another exchange, Coinbase, also held a hearing in the U.S. District Court for the Southern District of New York seeking to dismiss the SEC lawsuit.
After listening to the court’s five-hour hearing, Elliott Stein, a senior litigation analyst at Bloomberg, wrote that he believed Coinbase had a high chance of winning the case and predicted that there was a 70% chance of a full dismissal of the SEC’s charges.
"Going into the SEC lawsuit Coinbase hearing, I thought Coinbase would probably win dismissal of its main claim (regarding the trading) on this motion, but probably not on the staking and brokerage charges. Success. But after the hearing, I think Coinbase may win the entire case.”
Although the backgrounds of the two exchanges are different, they may serve as a reference for the possible outcome of the lawsuit between Binance and the SEC.
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