A federal judge has ruled in favour of most of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance, while the cryptocurrency sector faces ongoing legal challenges with potential price growth for XRP despite SEC litigation involving Ripple.
A federal judge has allowed most of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Binance to move forward. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia ruled on the case late Friday.
The lawsuit, filed by the SEC in June 2023, accuses Binance and its founder and former CEO Changpeng Zhao of violating securities laws. Allegations include artificially inflating trading volumes, diverting customer funds, failing to block U.S. users from the platform, and misleading investors about market surveillance. The SEC also claims Binance facilitated trading of unregistered securities.
The ruling adds to Binance’s legal challenges after it agreed to pay $4.3 billion in November to settle with the Department of Justice and the Commodity Futures Trading Commission for illicit finance breaches. However, the judge noted that the SEC did not sufficiently prove that secondary sales of Binance’s tokens were securities, offering a partial win for the broader cryptocurrency sector.
In related news, an analyst indicated potential price growth for XRP, despite ongoing legal battles involving its parent company, Ripple, and the SEC. Analyst RLinda highlighted that XRP is showing signs of a technical breakout, with potential to rise above $0.70. Currently, XRP is trading at around $0.47, having support at $0.45, which is crucial for resurgence above $0.50. The outcome of the ongoing SEC v. Ripple litigation could significantly impact XRP’s market performance. Ripple’s CEO anticipates a verdict by the end of the summer.
Separately, the court found Ripple violated federal securities laws through institutional XRP sales but dismissed other charges. Ripple contests an SEC proposal for nearly $2 billion in fines, suggesting a civil penalty of up to $10 million instead.
At the time of writing, XRP’s price analysis shows a slight daily loss, trading at $0.47.
Disclaimer: Investing is speculative, and capital is at risk. This content should not be considered investment advice.
