Latest update on Binance legal dispute with the authorities says that Binance has objected to the SEC’s attempt to incorporate the results of the $4.3 billion guilty plea and settlement agreement with the United States’s  Department of Justice (DOJ) in the ongoing legal battle between Binance and the Security and Exchange Commission (SEC). According to Binance, the SEC’s action was not by the law and inappropriate in the scheme of things.

Recall, that the SEC sued Binance, in their excuses, it’s part of its ongoing efforts to regulate the cryptocurrency industry. The regulatory organization has tried to make Binance answerable for purportedly breaking securities laws. But Binance is retaliating, disputing the SEC’s application of the DOJ-agreed Settlement.

According to John Reed Stark, Chief of the SEC Office of Internet Enforcement, who raised the alarm about Binance’s challenging future, it was stated that the new filing by DOJ may mean the end of the exchange (Binance). 

DOJ And Binance Reviews Fine, Agrees On $4.3 Billion Settlement 

Binance further claims that no new evidence is presented in the SEC’s supplemental brief, which aims to incorporate the DOJ settlement outcomes into the ongoing legal proceedings. According to this claim, Binance is contesting the DOJ settlement’s applicability and admissibility in light of the SEC’s case.

The DOJ and Binance reached a $4.3 billion settlement over claims about Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. Binance also challenged that the SEC’s supplementary documentation failed to present new evidence related to the latest allegations.

Binance’s defence also challenged that SEC’s council has failed to prove that the digital assets in dispute meet the legal standards of an investment contract as required by the Howey Test. Binance also told the court that its cryptocurrency services only include registered securities to its United States customers.

SEC’s New Filing Lacks Evidence, CZ’s Judgement Slated February 2024 

The case calls into question the cooperation and communication between different U.S. regulatory agencies—especially in a sector as dynamic and fast-changing as cryptocurrency. Exchanges may now find themselves the target of legal actions from several agencies based on similar allegations due to the absence of clear regulatory guidelines, further complicating their legal position.

Binance asserted in its court documents that its agreement with the FinCEN and DOJ doesn’t apply to the charges presented in its case against the SEC. According to the court documents, FinCEN and DOJ had fined Binance $56 million in penalties for violating some security laws.

Through its lawyer, the exchange said the documents needed to correctly address the SEC’s accusations of violating security laws regarding selling unregistered securities to United States investors. Mutuma Maxwell, reporting for CryptoPolitan, said that the current Settlement by Binance violated the Bank Secrecy Act (BSA) of the United States.

FinCEN and DOJ, on the other hand, have accused Binance of violating the same act while maintaining a strong Anti-Money Laundering (AML) program. Binance, through its defence council, insisted that the court review SEC’s interpretation of the popular “Howey Test.”

As the case persists, more attention is focused on Changpeng Zhao who is said to be presently in the United States – as his sentence draws close. At the same time, the global cryptocurrency industry awaits the court judgment, which is expected to come up in February 2024.