SEC Reiterates Binance’s Illegal Operations, Highlights “Lack of Disclosure”

The United States Securities and Exchange Commission (SEC) has expanded its lawsuit against Binance. The updated legal filings now include a wider range of tokens, with Axie Infinity among those listed as securities.

In the latest update to the SEC v. Binance lawsuit, the regulator has accused Binance and its US affiliate, BAM Trading, of enabling the trade of tokens now deemed unregistered securities. The SEC alleges that Binance actively promotes these newly classified securities tokens to customers, emphasizing their potential returns.

SEC Expands Binance Lawsuit

The SEC stated: “Binance and BAM Trading fill these markets with information republishing and amplifying the issuer and promoter statements and activity promoting [tokens] as an investment.”

The amendment to the complaint also reiterates the SEC’s stance that Binance operated illegally as an unregistered exchange, broker-dealer, and clearing agency. The regulator claims that Binance used interstate commerce to conduct transactions in securities for others.

SEC TARGETS MORE TOKENS IN BINANCE LAWSUITThe SEC has intensified its lawsuit against Binance, adding tokens like Axie Infinity (AXS), Filecoin (FIL), and Cosmos (ATOM) to its list of unregistered securities. The updated filing alleges that Binance and BAM Trading facilitated… pic.twitter.com/S6VUwKxQkH

SEC Criticized over Terminology

The SEC’s filing further asserts that Binance failed to provide proper disclosure regarding the risks and legality of the tokens traded on its international and US platforms.

Amid its ongoing legal battle with Kraken, the SEC has faced criticism after admitting that the term “crypto asset security” is not formally defined.

Stuart Alderoty, Chief Legal Officer at Ripple, criticized the SEC for what he called a “twisted pretzel of contradictions,” referring to Footnote 6 of the amended complaint against Binance. Alderoty claimed the regulator “regrets any confusion it may have invited.”