Binance said it will “energetically” shield its business against a claim recorded yesterday by the US Protections and Trade Commission (SEC) against the organization and its Chief Changpeng Zhao.

The lawsuit accuses Binance and Zhao of 13 offenses, including the unregistered offer and sale of BNB and BUSD, the company’s own crypto assets.

The cryptocurrency exchange stated in its response to the SEC that user assets are on Binance. Because Binance is not based in the United States, the country is safe and the agency’s actions have “limited reach.”

Additionally, the company alleged that the SEC regulated the crypto industry through “enforcement and litigation” rather than providing clarity and direction.

The SEC asserts that Binance and Zhao diverted customer funds to third parties owned by Zhao, such as Merit Peak and Sigma Chain, by mixing customer funds with their own.

Gurbir Grewal, director of the SEC’s enforcement division, stated, “We allege that Zhao and the Binance entities not only knew the rules of the road, but they also consciously chose to evade them and put their customers and investors at risk – all in an effort to maximize their own profits.”

According to Binance, there is “zero justification” for the SEC to file a lawsuit “in light of the ample time the [SEC] staff has had to conduct their investigation.” Furthermore, Binance stated that any claims that user assets on its US platform have ever been put at risk “are simply wrong.”

Recently, the US Product Prospects Exchanging Commission recorded a common protest against Zhao, expressing that the President had disregarded various guidelines. Zhao had referred to the common suit as “unforeseen and disheartening” and tended to the organization’s grumblings in a past blog entry.

Source – techinasia