Changpeng Zhao Rejects SEC’s ‘Irrelevant’ Claims on DOJ Settlement

Binance, along with ex-CEO Changpeng Zhao, issued a rebuttal in response to the U.S. Securities and Exchange Commission's (SEC) supplementary authority notice.

Changpeng Zhao Rejects Sec’s ‘irrelevant’ Claims On Doj Settlement_65b97cf11211e.webp

Binance Holdings and former CEO Changpeng Zhao have responded to the U.S. Securities and Exchange Commission’s (SEC) notice of supplemental authority regarding the settlement between Binance and the U.S. Department of Justice (DOJ). The response, filed in the U.S. District Court for the District of Columbia, rebuts the SEC’s attempt to introduce the findings of the $4.3 billion guilty plea and settlement agreement with the DOJ into the ongoing SEC lawsuit.

Binance contends that the SEC’s actions are procedurally improper and impermissible. The SEC sought to leverage the DOJ settlement findings to strengthen its case against Binance Holdings and Changpeng Zhao.

However, in their response, the company argued that the SEC failed to establish the relevance of the DOJ resolutions to any of its purportedly ‘defective claims’ against them. The SEC initially charged Binance with 13 violations of securities laws on June 5, 2023, including the accusation that Zhao and Binance improperly controlled customer assets on Binance US and engaged in commingling or diverting customer assets.

changpeng zhao rejects secs irrelevant claims on doj settlement 65b97cf114ce5

The court documents, submitted on December 12, 2023, highlight Binance’s position that the SEC’s notice does not align with the claims made in its June 2023 lawsuit. The company dismissed the SEC’s notice as an impermissible supplemental brief that introduces new factual information and arguments without identifying any new legal “authority.” Binance emphasized that providing a judicial notice is not a valid method for amending the complaint and accused the SEC of attempting to benefit from other agencies’ resolutions, indicating a lack of notice regarding relevant regulatory authority on the SEC’s part.

Related: SEC Investigates Allegations of Continued Access to Binance US Funds by CZ

As the legal battle unfolds, questions arise about how the SEC will substantiate its claims against the crypto exchange concerning operating unregistered national securities exchanges, broker-dealers, and clearing agencies within the framework of potential amendments to U.S. securities laws.

(100 votes)

5.0/5

(100 votes)

Latest

Bnb Plunges After Being Added To Coinbase’s Listing Roadmap

News | Altcoin | Editor Choice

BNB Plunges After Being Added to Coinbase’s Listing Roadmap

BNB’s price has tumbled sharply in recent days, despite the positive news that the token is set to be listed on Coinbase.

Hyperliquid Leads The $1.4 Billion Token Buyback Wave Sweeping Through Crypto In 2025

News | Altcoin | Editor Choice

Hyperliquid Leads the $1.4 Billion Token Buyback Wave Sweeping Through Crypto in 2025

The year 2025 is witnessing the largest token buyback wave in crypto history, as blockchain projects have spent over $1.4 billion to reduce circulating supply — and Hyperliquid is leading the charge with an unprecedented scale.

Binance Selling Pressure Weighs On Bitcoin

News | Bitcoin | Editor Choice

Binance Selling Pressure Weighs on Bitcoin, But ‘Uptober’ Could Soon Turn the Tide

Despite the ongoing selling pressure, analysts at CryptoQuant believe this is only a short-term correction before Bitcoin’s typical late-October rebound — the so-called “Uptober” — begins.

Binance Completes Gopax Acquisition, Paving The Way For A South Korean Comeback

News | Editor Choice | Policy & Regulations

Binance Completes Gopax Acquisition, Paving the Way for a South Korean Comeback

According to a report from South Korean outlet MK, the world’s largest cryptocurrency exchange Binance has officially completed its acquisition of Gopax, one of the five licensed digital asset exchanges in South Korea.

Why Hyperliquid Is Becoming Unstoppable

News | Altcoin | Editor Choice

After the Crash and Scandal: Why Hyperliquid Is Becoming Unstoppable

Amid record-breaking liquidations and a listing scandal that rocked Binance, Hyperliquid has risen as DeFi’s “fortress of steel” — a living testament to the true power of transparency and decentralization.

Screenshot 2025 09 10 100533