US SEC hopes to use Terraform Labs ruling to fight Coinbase and Binance

[ad_1]

The U.S. Securities and Exchange Commission (SEC) is hoping to capitalize on a partial victory in its ongoing lawsuit against Terraform Labs in separate lawsuits against two of the largest cryptocurrency exchanges, Binance and Coinbase.

exist document On Thursday, the company filed Terraform Labs’ ruling in the Southern District of New York in response to Coinbase’s lawsuit. exhibit Summary judgment on the claim that the UST, LUNA, wLUNA and MIR tokens are securities.

“In the course of this process, the Terraform Labs court resolved issues in favor of the SEC: Consider defendants’ motion in this case,” the SEC wrote.

The filing is intended to further support the SEC’s previous position opposing Coinbase’s motion.

“Each crypto-asset issuer invites investors – including buyers on the Coinbase platform – to expect the value of their investments to increase in accordance with its broadly available programs. Issuers increase and maintain the value of their assets, including through secondary markets resale),” SEC attorney satisfy Write in October.

The UST, LUNA, wLUNA and MIR tokens were not mentioned in the SEC’s complaint against Coinbase. The SEC accused Coinbase of another group of tokens that it claimed should be treated as unregistered securities, including SOL, ADA, MATIC, FIL, SAND, AXS , CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.

Binance lawsuit

In a parallel lawsuit against Binance, the SEC is also seeking to use the Terraform Labs ruling to bolster its case. In a separate filing on Wednesday, the agency asked a Washington court to review Terraform Labs’ ruling while considering Binance’s motion to dismiss the suit.

“The Court’s analysis of Terraform Defendants’ UST ‘stablecoin’ is particularly relevant to the Court’s consideration of Defendants’ arguments regarding Binance’s BUSD ‘Stablecoin’ and Tracking Program Services, BNB Vault and Simple Earn programs,” according to Wednesday’s filing.

The SEC said Terraform Labs previously used arguments similar to those used by Binance today to try to “separate” its token sales from the “development and promotion” of the Anchor protocol, which can generate profits by staking tokens. . The SEC said the situation is similar to Binance’s offering of BUSD and its tracking-as-a-service program, BNB Vault and Simple Earn programs.

This “provides additional grounds for the court to deny defendants’ motion to dismiss.” ”

In November, Binance and former CEO Changpeng Zhao agree Reached settlement with the U.S. Department of Justice and pleaded guilty to violating the Bank Secrecy Act, knowingly failing to register as a money transmitter, and assisting in the evasion of sanctions. The company agreed to pay an unprecedented $4.3 billion fine and appoint a new CEO.

The U.S. Securities and Exchange Commission’s lawsuit against Binance for allegedly operating an unregistered securities exchange is still ongoing.this organization be accused In June, the largest exchange accused Binance and its affiliates of repeatedly lying to customers and improperly transferring funds to a private investment fund owned by Zhao.Over the past seven months, Binance Many petitions were submitted The lawsuit was dismissed.