SEC, Binance unite against Eeon’s lawsuit intervention

The response from the United States Securities and Exchange Commission (SEC) and crypto exchange Binance has been submitted regarding the entity “Eeon,” which has sought to intervene on behalf of customers in the case. Both the SEC and Binance are against Eeon’s petition to intervene, citing that it does not meet the necessary legal requirements for intervention and consent.

According to the District Court for the District of Columbia, both Defendant Binance and Plaintiff U.S. SEC objected to Eeon’s request to intervene in the lawsuit.

The US SEC contends that Eeon has a history of repeatedly representing themselves in court cases, but their claims have consistently been unsuccessful in federal courts. The SEC has urged the court to reject Eeon’s petition for several reasons.

Firstly, the Exchange Act prohibits private litigants from intervening, making Eeon’s request impermissible. Secondly, the SEC argues that Eeon’s participation in the lawsuit would have no significant impact as their claims align with those of the defendants. Lastly, Eeon’s petition fails to meet the necessary requirements for intervention. Additionally, Eeon’s counterclaims, seeking relief against both the SEC and Binance, are contradictory in nature.

Binance provided three grounds for dismissing Eeon’s petition. Firstly, the lack of consent from the SEC; secondly, Eeon’s failure to establish itself as a legitimate party of interest; and thirdly, the failure to meet the necessary legal requirements for intervention. Furthermore, Eeon’s counter-claim was deemed vague and unrelated to the current lawsuit.

Therefore, both the plaintiff (SEC) and the defendants (Binance and CEO Changpeng “CZ” Zhao) are united in their opposition to any intervention by Eeon in the SEC’s lawsuit against Binance and its CEO.

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In the meantime, Binance has filed a motion to dismiss the lawsuit brought by the US CFTC, arguing that the global crypto exchange is not under the jurisdiction of the CFTC and that the CFTC lacks the right to sue its CEO, CZ. However, due to the court’s extended deadlines for the submission of responses by both the CFTC and Binance, the dismissal process is expected to extend into the following year.

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