Former Binance CEO Changpeng Zhao has moved to dismiss the Securities and Alternate Fee’s (SEC) amended lawsuit, claiming that the regulator can’t differentiate between crypto securities and Beanie Infants.
Binance and Zhao filed the movement to dismiss yesterday whereas alleging the SEC’s new submitting “refuses to articulate any standard for courts, litigants, or market participants to know which crypto-asset transactions qualify as investment contracts, and which do not.”
The SEC filed the lawsuit in June 2023 and amended it final month. It names Binance, BAM Buying and selling Providers Inc., and BAM Administration US Holdings, alongside Zhao, as defendants.
Based on the movement to dismiss, winners and losers are being chosen “arbitrarily” by the SEC and “its non-test cannot differentiate securities from Beanie Babies at the pleading stage.” The submitting then singles out 5 varieties of transactions that it believes the SEC has misinterpreted inside its contemporary allegations.
The submitting additionally needs to dismiss the SEC’s disgorgement request, calling it “meritless” and suggesting it will streamline the case by “avoiding burdensome and irrelevant discovery into Defendants’ finances.”
It additionally asks the courtroom to class the SEC’s request to restrict Zhao’s participation in securities markets through BAM or Binance entities as “Moot.” Zhao was already banned from managing the Binance enterprise as part of his plea settlement.
Lastly, its conclusion said that, after 89 pages of courtroom steerage, 100 new allegations, and 16 months of expedited discovery, “the SEC’s amended claims still fail as a matter of law.”
“The problem is with the SEC’s legal theories, not the facts at its disposal,” it claimed.
