Binance CEO Changpeng Zhao (CZ) and the organizations he leads have filed a lawsuit against the US Securities and Exchange Commission (SEC), accusing the regulator of intentionally misleading the public and engaging in unprofessional conduct. Karma.

Attorneys representing Binance, Binance.US, and Changpeng Zhao sued the SEC in the U.S. District Court for the District of Columbia. The regulator is accused of intentionally "misleading" the public about Binance's improper use of customer assets.

If the lawsuit is approved, SEC representatives will be restricted from speaking publicly about Binance during the trial, which could significantly influence the court's decision.

In the trial previously initiated by the SEC, the agency alleged that Binance and individual CZ may have “mixed customer assets or misused customer assets.” This is why the SEC asked the court to freeze all assets of Binance.US.

However, the court minutes denied the above allegations and stated that the SEC did not provide evidence that Binance used customer assets for the wrong purpose. As a result, the SEC's public allegations caused unnecessary confusion in the marketplace, misled juries, and were inconsistent with the rules of professional conduct. Meanwhile, Binance asked the SEC to comply with “current rules of conduct.”

The court eventually ruled, forcing the SEC and Binance to find a compromise solution, but now the case has taken a different turn.