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Last updated: June 29, 2024, 12:00 EDT | 2 min read

A United States court has ruled against cryptocurrency exchange Binances attempt to dismiss the majority of claims leveled against it by the countrys securities regulator, the Securities and Exchange Commission (SEC).

According to the court filing by Judge Amy Berman Jackson on June 28, claims related to Binances staking program, the sale of BNB tokens following its initial coin offering, and anti-fraud violations will proceed.

The court also upheld the SECs contention that former Binance CEO Changpeng CZ Zhao acted as a control person and that Binance was obligated to register under the Exchange Act.

However, the ruling wasnt a complete victory for the SEC.

Judge Jackson decided to dismiss claims relating to BNB secondary market sales and all sales associated with the Binance USD (BUSD) stablecoin.

In her decision, she referred to Judge Analisa Torres ruling in the SECs case against Ripple as supporting grounds for dismissing the SECs claim regarding BNB secondary market sales.

The courts decision came as a surprise to finance lawyer Scott Johnsson, who described it as a significant setback for the securities regulator.

Fox Business reporter Eleanor Terrett anticipates that lawyers representing Coinbase, Kraken, and Consensys will leverage this opinion to strengthen their positions in their respective litigations.

Judge Jackson also rejected the SECs claims concerning Binances passive income feature, Simple Earn.

A court hearing has been scheduled for July 9 to further address the matter.

The SEC, led by Gary Gensler, filed the lawsuit against Binance in June 2023, alleging that the exchange had offered the sale of unregistered securities and operated illegally within the United States.

Binance and CZ responded by filing a motion to dismiss the lawsuit approximately three months later, arguing that the SEC had exceeded its legal authority.

In addition to the lawsuit, Binance has faced challenges on the regulatory front.

Seven US states, including Alaska, Florida, Maine, and North Carolina, have either revoked or denied Binance the right to renew its money transmitter license.

Furthermore, CZ is currently serving a four-month prison sentence for violating money laundering laws.

Despite these legal hurdles, Binance continues to hold its position as the worlds largest cryptocurrency exchange, boasting over 200 million users and managing assets totaling $100 billion.

Just two years ago, in 2022, Binance reported a user base of around 130 million.

By 2023, the exchange had added 40 million more users, bringing the total count to 170 million.

Impressively, in the first half of 2024 alone, Binance has already added at least 30 million new users.

In May, the Financial Intelligence Unit of India (FIU-IND) revealed that Binance has successfully registered with the regulatory body, returning to the country after some regulatory hurdles.

Prior to that, the exchange announced that it had obtained a license from Dubais regulator, VARA, enabling the platform to cater to retail clients along with qualified and institutional ones.

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US Judge Allows Major Portion of SEC Lawsuit Against Binance and CZ to Proceed - Cryptonews

The cryptocurrency world has been witnessing both exciting developments and worrying events lately. Popular meme coin project Floki Inu has issued a warning to investors about fake tokens. At the same time, Binance cryptocurrency exchange warned its users about increasing fraudulent activities on Telegram. In this article, we will examine the details of these two important developments and offer tips on how investors can stay safe.

Floki Inu, the popular meme coin project, has taken action to warn investors against fake tokens. It has been reported that fake tokens under the Floki Inu brand are circulating on the Solana and Base blockchains and that these tokens are used to defraud investors. The official Floki Inu token is only available on the Binance Smart Chain (BNB) and Ethereum (ETH) networks. The correct contract addresses of the token on these networks are:

The Floki Inu team recommends that investors obtain token information only from official sources and be wary of fake tokens. The Floki Inu ecosystem continues to thrive despite these fraud attempts. The usage areas of the Floki Inu token are expanding with new projects such as FLOKI Name Service. This service has been rolled out to the BNB Chain mainnet and allows users to register decentralized domains with the .floki extension. In particular, FLOKI achieved an important milestone by reaching more than 417,400 owners on BNB Chain. As a celebration of this success, a program was launched to reward owners with interest income. Even though Floki Inu price has been in an uptrend over the last 24 hours, it failed to surpass the daily high of $0.0001709. The price is currently trading at $0.0001638.

On the other hand, cryptocurrency exchange Binance warned its users about increasing fraudulent activities on Telegram. These scams involve cybercriminals posing as Binance employees to commit fraud, phishing attacks, or investment fraud. To counter this threat, Binance published an article describing common Telegram scams and giving tips on how to avoid them.

Binance advises users to always carefully verify the information of their Telegram contacts. When checking account information, users should pay attention to each letter in the username, checking uppercase and lowercase letters as well as special characters. As a result, to protect yourself from scammers, check official account information and usernames. Also make sure that the letters and special characters in the account information are correct. You may also find it helpful to report suspicious accounts to Binance.

To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel

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2 Warnings from Binance and Floki Inu! Pay Attention to These - Kriptokoin.com

A United States judge has declined to dismiss several claims brought against crypto exchange Binance by the Securities and Exchange Commission (SEC).

The case was filed in June 2023 by the SEC chairman Gary Gensler who accused Binance of offering securities without registering them and operating in the United States without authorization.

In a June 28 court filing, Judge Jacksons decision allowed some claims to proceed to trial while dismissing others. Jackson permitted the SEC to continue with claims related to Binances BNB staking program, anti-fraud violations, and the sale of BNB coins following its ICO.

The SEC also proved its allegations that Changpeng CZ Zhao, the founder of Binance, was a control person and the allegations that Binance should have registered under the Exchange Act.

However, Judge Jackson dismissed the allegations related to the secondary market sale of Binances BNB tokens, relying on a similar decision of the SEC in the Ripple case. She also dismissed suggestions concerning the Binance USD (BUSD) stablecoin and the exchanges Simple Earn passive income tool.

The decision is a major step in the legal battle over the status of virtual property. This is in line with the previous judicial decisions that have emphasized the need to appreciate the economic aspect of token sales under the Howey Test.

Nevertheless, Binance has faced legal problems and is still the biggest exchange for cryptocurrencies with more than 200 million users and assets of over $100 billion. The case remains in the limelight as it moves through the legal process with a court session set for July 9th.

This ruling by Jackson is somewhat favorable for Binance and the SEC at the same time, which has implications for the regulation of cryptocurrencies in the United States.

Also Read: Binance Steps Up Compliance Efforts Against Account Misuse

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US Judge Refuses to Dismiss Claims against Binance - Crypto Times

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The US Securities and Exchange Commission (SEC) lost its bid to classify sales of BNB, Binances native token, on secondary markets, and the Binance USD (BUSD) stablecoin as securities, according to a court filing signed by Judge Amy Berman Jackson on June 28.

The court referenced Judge Analisa Torres 2023 ruling in the SEC vs. Ripple Labs case to dismiss the secondary BNB sales claim. It stated that determining whether a secondary market sale is a sale of an investment contract depends on the totality of the circumstances and the economic reality of each specific transaction.

According to the filing, the SECs contention was based on the idea that if BNB was initially sold as an investment contract, any subsequent token sale would also be considered a sale of a security.

However, the court stated that this assertion does not hold, as it does not consider each secondary transactions specific details and context. In other words, just because BNB tokens were initially sold as investment contracts does not mean they remain securities throughout their lifecycle.

The court also highlighted inconsistencies in the SECs stance and noted that more facts are needed to plausibly allege an expectation of profits from secondary sales under the Howey test.

Scott Johnsson, Van Buren Capitals general partner, called the ruling a big loss for the SEC.

James MetaLawMan Murphy, a crypto-focused attorney, also celebrated the decision, calling it a win for the greater crypto industry.

The courts dismissal of the SECs argument about BNB secondary sales could influence other cases where crypto exchanges like Kraken and Coinbase are involved, as they face similar charges from the SEC for trading crypto assets considered unregistered securities.

While the court dismissed the SECs secondary market sales claim, it mostly sided with the SEC in its lawsuit against Binance.

As noted, the SEC can continue investigating Binances staking program, the sale of BNB tokens after their initial coin offering (ICO), and potential anti-fraud violations.

The court will also consider the SECs claims that Binances former CEO, Changpeng Zhao, significantly influenced Binance and that Binance should have registered as an exchange.

CZ is currently serving a separate sentence for violating money laundering laws.

The SEC vs. Binance lawsuit started in June last year when the securities regulator sued Binance and its founder, Changpeng Zhao, alleging that Binance was operating illegally in the US by offering the sale of unregistered securities.

About three months later, Binance filed a motion to dismiss the SEC lawsuit, arguing that the SEC had exceeded its legal authority.

Following the latest court order, the next court hearing is scheduled for July 9.

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SEC loses bid to classify BNB secondary sales as securities - Crypto Briefing

Binance has announced an update to the collateral ratios for several assets (PEPE, WIF, LISTA, IO, ZRO, ZK and NOT) under its Portfolio Margin program, set to take effect on June 28, 2024, at 06:00 (UTC). The changes are expected to be completed within approximately one hour, according to Binance.

The update to the collateral ratios will directly impact the Unified Maintenance Margin Ratio (uniMMR) for users. Binance advises users to closely monitor their uniMMR to avoid potential liquidation or losses resulting from the changes in collateral ratios. The update is part of Binance's ongoing efforts to optimize and maintain the security of its trading environment.

Users should be aware that discrepancies may exist in translated versions of the announcement. Binance recommends referring to the original English version for the most accurate and up-to-date information.

Changes in collateral ratios can have significant implications for users engaged in margin trading. Adjusting the collateral ratio affects the amount of collateral required to maintain open positions, thereby influencing the likelihood of margin calls and liquidations. Traders must stay vigilant and prepared for any adjustments to their accounts.

The announcement also includes a disclaimer highlighting the inherent risks associated with digital asset trading. Binance emphasizes that prices can be volatile, and users are responsible for their own investment decisions. The platform advises traders to make independent assessments of the risks and benefits before engaging in futures trading.

Excerpt from:

Influencing PEPE, WIF, LISTA, IO, ZRO, ZK and NOT, Binance to Update Collateral Ratios for Multiple Assets Under ... - Blockchain News