Decentraland

Filecoin

Axie Infinity

Cosmos

The United States Securities and Exchange Commission has expanded its lawsuit against crypto exchange Binance to broaden the scope of its claims.
The SEC’s updated legal filings now list an additional range of tokens as securities, including Axie Infinity’s Axie Infinity Shards (<a data-ct-non-breakable="null" href="https://cointelegraph.com/axie-infinity-axs-price-index" rel="null" target="null" text="null" title="null">AXS</a>), Filecoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/filecoin-fil-price-index" rel="null" target="null" text="null" title="null">FIL</a>), Cosmos’ ATOM (<a data-ct-non-breakable="null" href="https://cointelegraph.com/cosmos-price-index" rel="null" target="null" text="null" title="null">ATOM</a>), The Sandbox’s SAND (<a data-ct-non-breakable="null" href="https://cointelegraph.com/the-sandbox-sand-price-index" rel="null" target="null" text="null" title="null">SAND</a>), and Decentraland’s MANA (<a data-ct-non-breakable="null" href="https://cointelegraph.com/decentraland-mana-price-index" rel="null" target="null" text="null" title="null">MANA</a>).&nbsp;
The development follows the continued pattern of the SEC’s ongoing efforts to regulate the crypto industry and classify digital assets as securities.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-diplomats-pressure-nigeria-release-detained-binance-exec" rel="null" target="null" text="null" title="null">US diplomats pressure Nigeria to release detained Binance exec</a>
<h2 id="allegation-expansion">Allegation expansion</h2>
In this latest update to the SEC v. Binance lawsuit, the regulator has accused Binance and its US affiliate, BAM Trading, of facilitating the trade of tokens now considered unregistered securities.
The SEC has alleged that the Binance platforms actively promote these tokens, newly deemed securities, to customers and highlight their potential investment returns.
<blockquote>
 “Binance and BAM Trading fill these markets with information republishing and amplifying the issuer and promoter statements and activity promoting [tokens] as an investment.”
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-bybit-secure-full-crypto-licenses-kazakhstan" rel="null" target="null" text="null" title="null">Kazakhstan mulls Binance, Bybit for digital asset trading&nbsp;</a>
<h2 id="unregistered-activity-claims">Unregistered activity claims</h2>
The SEC’s amendment to the complaint also reiterates its position that Binance operated illegally as an unregistered exchange, broker-dealer and clearing agency.&nbsp;
The regulator stated that, at all relevant times, Binance “used means and instrumentalities of interstate commerce to engage in the business of effecting transactions in securities for the account of others.”
In the claims, the SEC also stated that Binance failed to provide appropriate disclosure regarding the risk and legality of the tokens trading on its international and US platforms.
 Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-subsidiary-tokocrypto-secures-full-license-indonesia" rel="null" target="null" text="null" title="null">Binance subsidiary Tokocrypto secures full license in Indonesia</a>
<h2 id="sec-s-apparent-contradictions">SEC’s apparent contradictions</h2>
Amid the ongoing lawsuit with Kraken, the SEC has <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/kraken-denies-sec-unregistered-securities-allegations" rel="" target="_self" text="null" title="https://cointelegraph.com/news/kraken-denies-sec-unregistered-securities-allegations">come under scrutiny after admitting</a> that “crypto asset security” is a “made-up term,” as highlighted by Stuart Alderoty, chief legal officer at Ripple.
Alderoty mocked the regulatory entity for its “twisted pretzel of contradictions” prompted by Footnote 6 of the amended complaint against Binance, stating the regulator “regrets any confusion it may have invited.”
<figure>
 <img alt="SEC expands Binance lawsuit: AXS, FIL, ATOM now securities" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191eb7f-d7ac-701c-aa81-0c5bbd683d44">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/iampaulgrewal/status/1834452836853416352" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/iampaulgrewal/status/1834452836853416352">Paul Grewal</a>
 </figcaption>
</figure>
Paul Grewal, chief legal officer at Coinbase, highlighted the regulator’s claim that “XRP itself is a security” in the 2020 Ripple et al. lawsuit and asked the SEC, “Why mislead the Court?”
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/simple-change-save-ethereum-roadmap-to-hell/" rel="null" target="null" text="null" title="null">Proposed change could save Ethereum from L2 ‘roadmap to hell’</a>

SEC expands Binance lawsuit: AXS, FIL, ATOM now securities

Table of Contents

Cointelegraph

Other articles published on Sep 13, 2024

Coinpedia Fintech News

Bitcoin’s Bullish Breakout Beckons: Elliot Wave Theory Predicts Surge to $190,000

Bitcoin Has Only Had One Interest Rate Cut Cycle Before: What Happened Then, What Do Analysts Exp...

FBI Finds Crypto Fraud Losses Hit $5.6B in 2023, Up 45% from 2022

Analyst Who Predicted Recent Bitcoin Drop to $49,000 Issues Caution for XRP Holders, Predicts 3,5...

Treasure DAO to Vote on Moving Web3 Games to ZKsync Network

Join our free newsletter for daily crypto updates!