Binance’s full response: All user assets are safe and secure; SEC’s allegations are intended to unilaterally fight for the right to define the crypto market

On June 5, the U.S. Securities and Exchange Commission ( SEC ) filed 13 charges against Binance and its founder Changpeng Zhao , including operating an unregistered exchange, broker-dealer, and clearing agency; misrepresenting trading control and supervision on the Binance.US platform; unregistered issuance and sale of securities; failure to restrict U.S. investors’ access to BINANCE.COM; misleading investors, etc.

Binance responded to the allegation in a public article, saying that any allegation that user assets on the Binance US platform were ever at risk was false, that all user assets on Binance and its affiliated platforms (including Binance.US) were safe, and that Binance would actively defend against any false accusations. Binance believes that the SEC's actions appear to be an effort to rush to seize jurisdiction from other regulators, and that protecting investors does not seem to be the SEC's top priority.

The following is the full text of Binance’s response:

We are disappointed that the U.S. Securities and Exchange Commission (SEC) has chosen to sue Binance today. From the beginning, we have actively cooperated with the SEC's investigation, worked hard to answer their questions, and address their concerns. In recent days, we have had extensive and friendly discussions and hoped to reach a negotiated settlement to complete the investigation. Despite our efforts, the SEC's charges today represent that they have abandoned negotiations with us and have chosen unilateral action and litigation.

Binance takes the SEC’s allegations seriously and we should not be the subject of an SEC enforcement action, especially in an emergency. We will not be the subject of enforcement action. We will not be the subject of enforcement action in an emergency. We will not be the subject of enforcement action in an emergency. The SEC’s refusal to actively engage with us is yet another example of the Commission’s misleading and willful refusal to provide clear guidance and advice to the crypto asset industry. As with other crypto projects facing similar lawsuits, today’s action is just one of many cases where the Commission has decided to use the heavy-handed approach of enforcement and litigation to regulate rather than the thoughtful and nuanced approach that dynamic and complex technology requires. Unilaterally labeling certain tokens and services as “securities,” even those over which other U.S. authorities have already asserted jurisdiction, only compounds these issues.

Perhaps most surprising is that the SEC's actions undermine the United States' position as a global financial innovator and leader. Crypto asset laws are still relatively incomplete in many countries and regions around the world, and regulation by law enforcement is not the best path forward. An effective regulatory framework requires cooperative, transparent, and prudent policy engagement, yet this is exactly the path the SEC has abandoned.

To be clear: the allegation that Binance.US users’ assets were ever at risk is completely false, and given the time the SEC staff had to investigate, their actions are completely unwarranted and without any basis. All users’ assets on Binance and its affiliated platforms (including Binance.US) are safe and secure, and we will vigorously defend against any allegations to the contrary. Instead, the SEC’s action appears to be an attempt to wrest jurisdiction from other regulators — and the interests of investors do not seem to be the SEC’s primary concern. Due to Binance’s size and global visibility, Binance is now an easy target in the US regulatory tug-of-war . At this point in time, it seems that the SEC’s goal has never been to protect investors. If they valued investors, the SEC staff would have engaged with us carefully and factually to demonstrate the safety and security of the Binance.US platform. However, the SEC’s true intention seems to be simply to attract attention.

We will continue to work with regulators and policymakers in the U.S. and around the world because it is the right thing to do . At the same time, Binance will continue to actively participate in ensuring that the next generation of cryptocurrency regulation can both promote innovation and protect consumers. Since Binance.com is not a U.S. exchange, the SEC's scope of action is limited. Nevertheless, we still hope that U.S. crypto market participants will oppose the SEC's latest overreach and are ready to fully fight for their legitimate rights and interests in accordance with local laws.

We will work with industry partners to defend blockchain technology from misguided lawsuits. We will work tirelessly to provide users with a safe and trusted platform that stays true to our core values ​​of advancing financial freedom.