Binance’s defense against SEC could be aided by Mango Markets case

Binance could fortify its defence against the US Securities and Exchange Commission (SEC) by drafting connected an unrelated case.

On April 26, Binance and related parties filed a authorities papers from an unrelated lawsuit against Mango Markets exploiter Abraham Eisenberg, who was convicted by a assemblage connected April 18.

The government’s argument

Binance’s defence squad drew attraction to a circumstantial paragraph successful which the US authorities expressed its presumption connected whether a peculiar stablecoin, USDC, is simply a security.

On behalf of the US government, lawyer Damian Williams stated that determination “is nary factual ground for treating USDC arsenic a security,” adding that “holders of USDC bash not expect profits from the token” due to the fact that of its ties to the US dollar.

The statement closed disconnected a imaginable objection that would forestall classifying MGNO Perpetuals, which are based connected the worth of USDC, arsenic a mixed swap.

The statement aided authorities prosecutors successful the Eisenberg lawsuit but could payment defendants facing securities violations successful different cases, specified arsenic Binance.

Limitations of the argument

The relevance of the lawsuit whitethorn person limits. The SEC has charged Binance with assorted securities violations, but each lawsuit focuses connected antithetic offerings.

Furthermore, the latest filing is lone applicable to the SEC’s civilian securities suit against Binance Holdings Limited, its erstwhile CEO Changpeng Zhao, and related companies. It does not pertain to a transgression lawsuit successful which Zhao has pleaded blameworthy and awaits sentencing.

The Eisenberg lawsuit could besides help defendants successful different securities cases, including Coinbase, for akin reasons. The SEC initiated lawsuits against Coinbase and Binance conscionable days isolated successful June 2023, and it has precocious assorted different suits against different exchanges, including Kraken successful November 2023.

 

The station Binance’s defence against SEC could beryllium aided by Mango Markets case appeared archetypal connected CryptoSlate.