On February 10, Binance and the Securities and Exchange Commission (SEC) filed a joint motion for a 60-day stay in the lawsuit filed two years ago.
In an unusual instance, the SEC gave a reason for pausing the case. Its new crypto task force, initiated by Acting Chairman Mark Uyeda, “may impact and facilitate the potential resolution of this case.”
However, the SEC did not explain why the pressure against Binance should be relieved. One of the employees of the company admitted that it was a criminal enterprise.
Gensler said in a statement at the time that Binance and its founder, Changpeng Zhao, had engaged in an extensive “web of deception” while the SEC’s X account posted a graphic highlighting a key piece of evidence of alleged wrongdoing: a quote from Binance’s chief compliance officer saying to another employee in 2018, “We are operating as a fking unlicensed securities exchange in the USA bro.”
AP
Previously, Binance had to pay a $4 billion settlement, with Zhao pleading guilty to failing to prevent money laundering, which is a felony.
Regardless, the SEC has essentially thrown out what was described as a “slam dunk case,” according to James Murphy, a securities law expert.
