Binance and CZ Ask Court to Dismiss SEC Lawsuit.

Binance and its CEO CZ Zhao have asked the court to dismiss the lawsuit by the US Securities and Exchange Commission (SEC). They believe the SEC went beyond its powers.

On Sept. 21, Binance and Zhao said in a court document that the SEC gave no clear rules for crypto before suing them. They believe the SEC is wrongly using old rules for new crypto matters. They said, "The SEC’s lawsuit has no foundation in the current laws."

Binance's US branch, Binance US, also wants the lawsuit against it to be dismissed. Another key point: the SEC had a small problem getting permission to look into Binance US's computer software.

In June, the SEC accused Binance and its related companies of breaking US laws by selling things not allowed and operating without permission. Three months before this, another agency, the Commodity Futures Trading Commission (CFTC), had issues with Binance too.

Because of these legal problems, Binance US saw a big drop in trades. On Sept. 13, Binance US let go of many workers, and its top boss, Brian Shroder, left the company.