SEC Uses Terra Lawsuit Ruling in Case Against Binance
SEC cites the Terra Labs case in a lawsuit against Binance, using it as key evidence to argue that certain crypto assets are securities.
The U.S. Securities and Exchange Commission (SEC) has brought in a new development from a recent court case into its lawsuit against Binance.
SEC Files Supplemental Authority Against Binance
The SEC filed a notice on January 3, asking the court to consider the decision from the SEC v. Terraform Labs case in its lawsuit against Binance and its executives.
The SEC argues that the Terra case is relevant to the Binance case, the Terracase, which defined certain cryptocurrencies as securities, is relevant to Binance's offerings like BUSD and BNB Vault. The Terra ruling used the 'Howey Test' to classify cryptocurrencies as investment contracts or securities.
The court's decision in the Terra case, which found a violation of the Securities Act, is cited by the SEC as a precedent for its lawsuit against Binance.
Binance and its former CEO, Changpeng Zhao, criticized the SEC for using unrelated legal actions in its case against them.
