U.S. Judge Lets Most of SEC Case Against Binance Proceed, Dismisses Secondary Sales Charge

Judge allows SEC charges against Binance and CEO Zhao to proceed, dismisses secondary sales charge.

: Judge Amy Berman Jackson ruled that the SEC plausibly alleged Binance and Zhao violated federal securities laws. The ruling allows charges regarding BNB coin offering and staking to proceed but dismisses secondary sales and Simple Earn charges. Zhao is also serving a separate 4-month sentence related to a sanctions violation.

Judge Amy Berman Jackson of the District Court for the District of Columbia ruled that most of the SEC's charges against Binance and its CEO Changpeng Zhao can proceed. The allowed charges include allegations of unregistered initial coin offering, ongoing sales for BNB, failures to register, and fraud.

The judge dismissed Binance and Zhao's motion to discard charges tied to secondary BNB sales and Simple Earn. This ruling draws from previous judicial decisions, notably Judge Analisa Torres' 2023 ruling in the SEC's case against Ripple Labs.

Zhao is concurrently serving a 4-month sentence related to a sanctions violation charge. The judge rejected arguments that the SEC can't enforce actions under the major questions doctrine, stating that the cryptocurrency industry does not have the broad reach to warrant such application. A hearing is scheduled for July 9, 2024.