Binance.US Faces Ongoing Legal Challenges in the United States
Binance.US, the American arm of cryptocurrency exchange Binance, continues to face legal battles in the United States. The exchange has already suffered significant consequences following a June 2023 lawsuit filed by the United States Securities and Exchange Commission (SEC), which led to the termination of over 200 staff members and a sharp decline in revenues, according to the company’s chief operating officer, Christopher Blodgett. Now, the SEC claims that Binance.US is either unwilling or unable to provide information regarding the custody of customer assets. As a result, the regulator has requested court intervention to expedite the discovery process.
The SEC’s investigation revolves around whether employees of Binance’s non-U.S. branch had access to Binance.US customer assets. The SEC alleges 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 end the accelerated discovery process.
In another legal setback for Binance, a U.S. appeals court has overturned a ruling that dismissed a class-action lawsuit filed by investors against the exchange. The lawsuit, led by investor Chase Williams in April 2020, claims 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 untimeliness according to the relevant statute of limitations. However, the appeals court agrees with the plaintiffs’ argument that Binance is subject to U.S. securities laws and that their initial filing was timely.
Do Kwon Wins Appeal Against U.S. Extradition
The legal battle involving Do Kwon, co-founder of Terraform Labs, continues to unfold, as a court in Montenegro has once again overturned a lower court’s decision to extradite Kwon to the United States. The Appellate Court of Montenegro annulled the High Court of Podgorica’s approval of Kwon’s extradition, stating that the previous order was marred by significant violations of local criminal procedure laws. This latest decision marks another development in Kwon’s protracted extradition process, which began with his arrest in Montenegro in March 2023. Both the U.S. and South Korea have requested Kwon’s extradition, leading to a disagreement over which country should receive him.
Virginia Passes Blockchain Bill
The Virginia Senate has passed a groundbreaking bill establishing a workgroup dedicated to studying the cryptocurrency ecosystem and making recommendations to support its growth. The workgroup will consist of 13 members, including five from the Senate, five from the House of Delegates, two non-legislative members from the blockchain industry, and one non-legislative member representing the local government. The group has until November 1, 2024, to complete its studies on the cryptocurrency ecosystem and share its recommendations by the start of the 2025 Regular Session of the General Assembly.
Spain Prohibits Worldcoin from Collecting Data
The Spanish Agency for the Protection of Data (AEPD) has ordered Worldcoin to cease collecting and processing data in Spain, issuing a temporary ban for three months. The AEPD’s order comes in response to complaints that users in Spain are unable to withdraw their consent and allegations that Worldcoin has collected data from minors. This injunction follows an 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 download an app and visit an orb facility to have their eyes scanned for verification. As iris patterns are unique to each individual, this biometric method is considered more accurate than fingerprinting and other identification techniques.