Update as of March 13, 3:15 PM UTC: Binance.US is currently facing legal challenges in the United States. The exchange has already suffered significant damage from a lawsuit filed by the United States Securities and Exchange Commission (SEC) in June 2023, leading to the termination of over 200 employees and a decline in revenues, according to Christopher Blodgett, the company’s chief operating officer. The SEC is now claiming that Binance.US is either unwilling or unable to provide information regarding the custody of customer assets. The regulator has requested the court’s intervention to expedite the discovery process.
The SEC’s investigation revolves around whether employees of Binance’s non-U.S. division had access to customer assets held by Binance.US. The SEC argues that Binance.US has failed to prove that it did not have access to private keys or other means of accessing customer assets. In response, Binance.US has refuted the SEC’s allegations, stating that it has complied with the regulator’s extensive requests for information and has asked the court to put an end to the accelerated discovery process.
In a separate development, a U.S. appeals court has overturned a ruling that dismissed a class-action lawsuit against Binance brought by investors. The lawsuit, filed by Chase Williams in April 2020 on behalf of similarly affected investors, alleges that Binance engaged in the sale of securities without being registered as a securities exchange or broker-dealer. The district court initially dismissed the lawsuit, citing the investors’ claims as untimely based on the relevant statute of limitations. However, the appeals court agreed with the plaintiffs, asserting that Binance is subject to domestic securities laws and that the initial filing was timely.
Do Kwon, co-founder of Terraform Labs, has won an appeal against his extradition to the United States. A court in Montenegro has overturned a previous decision by a lower court to extradite Kwon. The Appellate Court of Montenegro ruled that the earlier order to extradite Kwon was marred by significant violations of local criminal procedure laws. This latest development adds to the ongoing saga surrounding Kwon’s extradition process, which began when he was arrested in Montenegro in March 2023. Both the U.S. and South Korea have requested his extradition, leading to a dispute over where Kwon should be sent.
In other news, the Virginia Senate in the United States has passed a groundbreaking bill establishing a workgroup dedicated to studying the broader cryptocurrency ecosystem and providing recommendations to foster its growth. The workgroup will consist of 13 members, including five representatives from the Senate, five from the House of Delegates, two members from the blockchain industry, and one representative from the local government. The group has until November 1, 2024, to conclude its studies on the cryptocurrency ecosystem and present its recommendations before the start of the 2025 Regular Session of the General Assembly.
Furthermore, the Spanish Agency for the Protection of Data (AEPD) has ordered Worldcoin to cease collecting and processing data in Spain. The AEPD issued a temporary order banning Worldcoin’s operations for three months while it investigates complaints that users in Spain cannot withdraw their consent and that the company has collected data from minors. This injunction follows a recent investigation by Hong Kong’s Office of the Privacy Commissioner for Personal Data into Worldcoin. The controversy surrounding Worldcoin stems from its use of biometric scanning devices called “orbs.” Users are required to have their eyes scanned at one of these facilities to sign up for the service, as irises are considered a unique form of identification.