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Binance CZ Says SEC Lawsuit Is ‘An Attack on the Entire Industry’

Changpeng Zhao (CZ), CEO of Binance It has been told The US Security and Exchange Commission filed a lawsuit against his firm as an attack on the entire crypto industry.

On June 5, the SEC filed a lawsuit against Binance and related entities, alleging that the firm’s offering of unregistered security tokens in BNB, ADA, and ALGO put US investors at risk in violation of federal securities laws. is included.

Binance Claims SEC Lawsuit Is Overreach

in june 5 statement, Binance said the SEC lawsuit is “overreach” because it is not a US exchange. The firm said it stands with “digital asset market participants in the US” and stands ready to “fight (the lawsuit) to the fullest extent of the law.”

Despite its cooperation with the regulator, Binance denied the allegations and expressed dismay at the SEC’s actions. It said:

“The SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry.”

Additionally, the US subsidiary of the embattled exchange, Binance.US, labeled the SEC’s lawsuit as “baseless”, calling it the latest example of the commission’s regulation-by-enforcement approach towards the crypto industry.

The crypto community supports Binance

Meanwhile, the lawsuit appears to unite the crypto community, with several prominent figures coming out in support of Binance.

Cardano (ADA) founder Charles Hoskinson said the lawsuit was “the next in a series of steps to implement Chokepoint 2.0 in the United States.” Hoskinson said this is not a regulatory incident, but a political, philosophical disagreement about the existence of cryptocurrencies and what they represent.

TRON founder Justin Sun responded to CZ, saying that he is “fully aware of your dedication to advancing the cryptocurrency industry, and that your abilities and ethics are beyond reproach.”

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