The SEC and Binance Unite Against Eeons Bid to Represent Binance Customers
The SEC and Binance oppose Eeon's bid to join their legal battle, while Eeon advocates for customer interests.
The United States Securities and Exchange Commission (SEC) and crypto exchange Binance have both disagreed with the company "Eeon" wanting to join in the SEC's case against Binance.
The U.S. District Court for the District of Columbia has reported that both Binance and the SEC don't want Eeon to join the lawsuit. They say that Eeon doesn't meet the legal requirements needed to join a case.
The SEC points out that Eeon has tried to represent itself in court cases many times before, but without success. The SEC also says that the law does not allow private companies like Eeon to join such cases. They argue that Eeon being part of the lawsuit won't change anything, because Eeon's claims are similar to the defendants' claims and don't meet the standards needed to join the case. The SEC also says that Eeon's counterclaims contradict each other.
Binance gave three reasons to reject Eeon's request: the SEC didn't give its consent, Eeon failed to prove it is a legitimate party of interest, and Eeon failed to meet the legal requirements to join the case.
Both the SEC and the defendants — Binance and its CEO Changpeng “CZ” Zhao — are against any involvement by Eeon in the SEC’s lawsuit against Binance.
Eeon aims to represent the interests of the customers and blames both the SEC's regulatory approach and Binance's handling of customer assets. They argue against the classification of cryptocurrencies as securities and insist that both Binance and the SEC should be held accountable for any possible damages arising from the lawsuit.
Binance is also trying to have the lawsuit brought against it by the U.S. Commodity Futures Trading Commission (CFTC) dismissed. Binance argues that the CFTC is trying to control individuals and companies outside the U.S., which goes beyond its authority. However, because the court has extended the deadlines for both the CFTC and Binance to respond, the process of dismissing the case is expected to continue into 2024.
