Did Binance sell securities without permission?

In its lawsuit against Binance, the SEC relies on previous court rulings related to cryptocurrencies. The central issue is whether Binance sold securities without authorization.

In her lawsuit against Binance, the SEC invoked an earlier ruling from the crypto sector: the lawsuit against Terraform Labs, the publisher of Terra (LUNA).

According to the SEC, the court ruled in Terra's case that Terra assets such as UST, LUNA and wLUNA are securities within the meaning of the Howey Test.

This is evidenced by court documents.

Because it was also possible to trade these assets on Binance, the exchange had inversely offered securities for trading. Because it was never licensed to do so, the SEC said it was in violation of U.S. securities laws.

Meanwhile, Binance founder Changpeng Zhao to remain in the U.S.. Until a verdict is reached against the former boss of the world's largest Bitcoin exchange, he will not be allowed to leave the country.