Third Party Intervention Lawsuit Between Binance And US SEC

There was interference from other parties in the legal feud between the Binance crypto exchange and the SEC. (Photo; Doc. Crypto News)

JAKARTA - In the latest developments related to the US Securities and Exchange Commission (SEC) lawsuit against crypto exchange Binance reportedly received intervention from other parties. Recently, a Nevada-based legal entity known as "Eeon" has tried to intervene in this case on behalf of customers.

The lawsuit filed by the US SEC involved Binance Global, Binance.US, and CEO Changpeng "CZ" Zhao, bringing 13 charges including allegations of misleading investors and violating securities laws.

According to a filing submitted to the District Court for the District of Columbia, Eeon filed a motion to intervene in a lawsuit between the US SEC and Binance Holdings. The legal entity argues that lawyers from the SEC and Binance have represented their own interests and no one is trying to speak on behalf of customers.

Eeon stated that they were the right party to interfere in this case because they had been identified as "Restrictions" in an order issued by the court on June 17, 2023.

They claim that they are not just ordinary "Customers", but also shareholders, investors, and cryptocurrency owners held by Binance and its subsidiaries. Eeon feels that their interests are not paid attention to in this case.

The legal entity also argues that crypto coins should be considered non-security commodities. They argue that these coins are used for personal and household use, not for commercial purposes. Eeon added that currently there are no regulations governing this type of new commodity, and the SEC has no jurisdiction over cryptocurrencies.

In addition, Eeon insists that Binance currently blocks access to customer crypto assets by controlling keys and limiting recall without proper notification. They alleg that the US SEC's actions exacerbate the situation for investors and state that money laundering allegations leveled against customers are baseless. Eeon also asked the court to issue an order that would allow customers to access their frozen "property" on the platform.

In a counter-charge filed by Eeon, they asked Binance and the US SEC to pay 20% of the daily value of the detained funds combined per day, or a total of 1000 US dollars (Rp. 15 million) per customer. In addition, Eeon expects Binance and the US SEC to have the same responsibility in paying the fine, which is US$500 (Rp7.5 million) by the US SEC and US$500 by Binance and its subsidiaries, as a result of their actions.

Customers who have long invested in Binance and cryptocurrencies are affected by the US SEC's sudden action without clear evidence and firm crypto regulations. Eeon also noted that the court could freeze part or 50% of crypto assets that would allow customers to gain part of their property.

Eeon claims to have had 30 years of experience in court cases and referred to an earlier court filing against the US Federal Reserve System in 2018.

This development shows that the lawsuit between Binance and the US SEC is increasingly complex and involves third parties seeking to protect the interests of customers. Court decisions will be an important factor in determining the outcome of this case and could have a significant impact on the overall crypto industry.