In response to the U.S. Securities and Exchange Commission’s lawsuit against Binance and its founder Changpeng Zhao, the agency disputed the argument made about “investment contracts.”
The complaint filed by the SEC “focuses on transactions by customers who clicked on a website, bought tokens from other anonymous token owners, and then logged off,” according to a filing made by Binance on Tuesday.
The exchange further stated, “There was no agreement with a promoter to invest funds in a shared business venture in any of the transactions at issue.”
According to Binance, the SEC disregarded the necessity of evaluating each transaction individually to ascertain whether or not a “investment contract” exists.
The companies that ran Binance.US, BAM Trading and BAM Management, also stated in a filing on Tuesday that the SEC has not ,The two documents are being made while Binance keeps attempting to have the June lawsuit filed by the SEC dismissed. The SEC filed a lawsuit against Binance and its founder, Changpeng Zhao, alleging that they had broken the securities laws of the nation by lying to investors and misdirecting money to Zhao’s other investment fund.
Plea of guilt
The SEC notified the court last week of Binance and Zhao’s guilty pleas to criminal charges related to anti-money laundering regulations.
According to the SEC, “This Court may take judicial notice of facts contained in the Consent Order and the plea agreements from Zhao and Binance, and consider them in deciding the Joint Motion.”