The United States Securities and Exchange Commission (SEC) has expanded its lawsuit against Binance. The updated legal filings now include a wider range of tokens, with Axie Infinity among those listed as securities.

In the latest update to the SEC v. Binance lawsuit, the regulator has accused Binance and its US affiliate, BAM Trading, of enabling the trade of tokens now deemed unregistered securities. The SEC alleges that Binance actively promotes these newly classified securities tokens to customers, emphasizing their potential returns.

SEC Expands Binance Lawsuit

The SEC stated: “Binance and BAM Trading fill these markets with information republishing and amplifying the issuer and promoter statements and activity promoting [tokens] as an investment.”

The amendment to the complaint also reiterates the SEC’s stance that Binance operated illegally as an unregistered exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, broker-dealer, and clearing agency. The regulator claims that Binance used interstate commerce to conduct transactions in securities for others.

SEC TARGETS MORE TOKENS IN BINANCE LAWSUIT

The SEC has intensified its lawsuit against Binance, adding tokens like Axie Infinity (AXS), Filecoin (FIL), and Cosmos (ATOM) to its list of unregistered securities.

The updated filing alleges that Binance and BAM Trading facilitated… pic.twitter.com/S6VUwKxQkH

— IBC Group Official (@ibcgroupio) September 13, 2024

SEC Criticized over Terminology

The SEC’s filing further asserts that Binance failed to provide proper disclosure regarding the risks and legality of the tokens traded on its international and US platforms.

Amid its ongoing legal battle with Kraken, the SEC has faced criticism after admitting that the term “crypto asset security” is not formally defined.

Stuart Alderoty, Chief Legal Officer at Ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Read this Term, criticized the SEC for what he called a “twisted pretzel of contradictions,” referring to Footnote 6 of the amended complaint against Binance. Alderoty claimed the regulator “regrets any confusion it may have invited.”