Binance and its CEO, Changpeng “CZ” Zhao, have asked a court to throw out a lawsuit filed by the US Securities and Exchange Commission.
The SEC accused Binance and Zhao of various violations, such as mismanaging customer funds, deceiving investors and regulators, and breaking securities laws.
Binance and Zhao argued that the SEC went beyond its legal authority in suing them.
They also said that the SEC tried to punish them retroactively, without giving any clear guidance on how the securities laws apply to cryptocurrencies.
“The SEC twists the meaning of the securities laws to claim regulatory power over the crypto industry,” the defendants’ lawyers wrote in the petition.
Binance.US, officially known as BAM Trading Services Inc., also filed a separate document to dismiss the charges against it.