Highlights:
- Zhao’s defense claims the SEC lacks evidence and clear definitions in its case against Binance.
- The SEC’s allegations hinge on classifying crypto assets as securities, sparking debate in the crypto community.
- Zhao plans to focus on education and tech investments, shifting away from his Binance leadership role.
Lawyers representing Binance CEO Changpeng Zhao filed a motion on November 3 to dismiss the SEC’s amended complaint. The motion claims that the SEC lacks evidence to support its allegations against Zhao and Binance. Zhao’s team argues that the complaint relies heavily on unsubstantiated allegations and offers no concrete evidence.
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One central point in Zhao’s defense is the SEC’s failure to prove his involvement in securities offerings. His lawyers state that the amended complaint repeats old allegations without presenting new evidence. They believe this repetition undermines the SEC’s case against him.
【Binance, CZ’s Lawyers File Motion to Dismiss Amended Complaint in SEC Lawsuit】
Lawyers representing @binance and former CEO @cz_binance have made a fresh attempt to dismiss the SEC lawsuit against them.
On Monday, they filed a motion to dismiss an amended complaint submitted… pic.twitter.com/Kd0ztpZCWf
— MetaEra (@MetaEraHK) November 5, 2024
Further, Zhao’s legal team argues that the SEC’s complaint fails to identify which digital assets are considered securities. They contend that with no definition of what the terms mean then the complaint is baseless. According to them, this vagueness destroys the SEC’s credibility and renders its case baseless.
The issue of jurisdiction makes another important argument. Zhao’s lawyers argue that the SEC has no authority over him because he resides in a different country. They claim that his affiliations are not closely connected to the United States therefore, should not be under its jurisdiction. This is a crucial jurisdictional issue in the defense of Zhao because it raises the reality of whether the case should be localized or not.
Inside the Case Against Binance and Zhao
The case made by the SEC against Zhao and Binance is quite complicated. The Commission claims that Binance and Zhao offered securities without registration as required by the laws. According to the SEC, Binance engaged in the issuance of securities to Americans without acting as a registered broker-dealer.
In addition, the SEC noted that Binance was carrying out operations of an unregistered securities exchange. The complaint pointed out that through the platform, users could trade in digital assets that fall under securities. The SEC believed this activity necessitated specific registration, which Binance never did.
Besides these allegations, the SEC further accuses Zhao of having operational management powers over Binance and therefore was aware of legal risks. This involvement, as stated by the SEC, makes Zhao personally liable. However, his legal team has refuted this, arguing that the SEC has not produced any proof showing that Zhao was directly involved.
The primary issue at the heart of this case is whether the crypto assets in question are securities. Zhao’s defense stated that the SEC has not clarified what would qualify as a security in the digital asset market. They argue that this absence of definition leads to ambiguity in the prosecution of Zhao and Binance.
Zhao’s Future Plans After Prison
Since being released from prison, Zhao has redirected his attention from Binance to other projects. He intends to focus on free education and investing in the growth of new industries.
Former Binance CEO CZ Charts New Path After Prison Term, Plans Education Venture#shibainu #jasmy #badideaai #cardano #xrp #bitcoin #Solana #Ethereum #Finance #shibarmy #CronosChain #cronoshttps://t.co/B9vKmrQiDe
— Crypt0 Radar News (@JONDONI_CRYPTO) November 4, 2024
One of Zhao’s main objectives is to create an education platform. He wants to ensure that children from developing countries have equal chances of getting a quality education. His platform, Giggle Academy, will offer free material for students, focusing on essential subjects through interactive lessons.
Zhao also wants to venture into sectors such as artificial intelligence, blockchain, and biotechnology. According to him, these industries have great potential for expansion.
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